Constant-Growth Dividend Discount Model Project

Constant-Growth Dividend Discount ModelFormat: PDF version of the Excel spreadsheet for DDM (see the attachment)CCompany that needed to analyse: Canadian National RailwayGrading Rubric: You will be marked based on the following categories (equal weighting for each): Data (inclusion and accuracy), Sources (provided and clear), Calculations (properly done), Documentation (formulas and sample calculations provided for the calculations), and Presentation
For this section, you will use the constant-growth dividend discount model to estimate your company’s expected rate of return. You will assume that the company is attempting to achieve a constant growth rate with its dividends and calculate that growth rate. The growth rate plus the expected dividend yield will give the expected rate of return.
Historical Growth:
Data Required:
Quarterly dividends per share paid by your company (in Canadian Dollars) for the period May 1, 2017 to April 30, 2022. Use the ex-dividend date (2 business days before the record date) as the date of the dividend. The date provided by Yahoo Finance is the ex-dividend date.A good source is the company’s website although the reported dividends may not have been adjusted for splits, so you will have to make the adjustment.
Another good source is Yahoo Finance Canada (https://ca.finance.yahoo.com/) but it sometimes misses dividends, double lists dividends, or records them incorrectly, so it is best to verify by checking the company’s website.
Only the regular quarterly dividends should be included. Do not include any extra or special dividends.

The April 30, 2022 closing stock price for your company.This can be found on Yahoo Finance Canada (https://ca.finance.yahoo.com/), the Toronto Stock Exchange (https://www.tsx.com), or many other financial websites

Calculations:
Calculate the annual dividends that your company paid. Sum the four quarterly dividends paid between May of one year and April of the next year for each of the 5 years of data you have collected.In some cases the company may have changed its dividend payment dates so that you may get a year with 5 dividends and/or a year with 3 dividends. You may need to make an adjustment so that you are always working with 4 dividends (i.e., move April up to May, or May back to April).
Some companies may have paid extra dividends. This will appear either as an added dividend payment or as an extra-large dividend that has been lumped with the regular dividend. If it looks like this has happened with your company you will need to check the appropriate annual report to determine if it was an extra or special dividend, in which case you should not include it in your calculations (but do still show it in your data and make a note that it was an extra dividend).
Make sure your data have been adjusted for splits. If you see the dividends have suddenly dropped by a large amount, it is likely that there has been a split and you will need to make an adjustment (for example, if there was a 2-for-1 split, you will need to divide all the dividends prior to the split by 2).

Calculate the annual growth rates of the dividends (i.e., the percentage change in annual dividends from one year to the next).
Calculate the average of your 4 annual growth rates. This is your value for g.
Estimate the total dividends that will be paid between May of this year and April of next year, assuming that the firm maintains its current average annual growth rate.
Calculate the firm’s expected rate of return using your calculated expected dividend, growth rate, and the unadjusted price for April 30 of this year.
Sustainable Growth:
Again, you will use the constant-growth dividend discount model to estimate your company’s expected rate of return. This time, however, you will estimate the growth rate by calculating the sustainable growth rate.
Data Required:
Most recently available financial statement information: Book Value of Equity (BE), Net Income (NI), Earnings per Share (use Diluted EPS Excluding Extraordinary Items), and Dividend per Share (Note that these last three must be from an annual income statement. You are collecting dividend per share again to make sure that it matches the time period used for the EPS).
These can be found at Yahoo Finance Canada (https://ca.finance.yahoo.com/), the Toronto Stock Exchange (http://www.tmxmoney.com/en/index.html), SEDAR (www.sedar.com), or on the company’s website.
The April 30, 2022 closing stock price for your company.
Calculations:
Estimate the return on equity and the plowback ratio using the financial statement data you have collected.
Estimate the sustainable growth rate using the return on equity and the plowback ratio.
Estimate the total dividends that will be paid between May of this year and April of next year, assuming that dividends grow at the sustainable growth rate. Use your previously calculated dividend for May 2021 to April 2022 from the Historical Growth section as your base.
Calculate the firm’s expected rate of return using your calculated expected dividend, sustainable growth rate, and the unadjusted price for April 30 of this year.
Report the data and results for these two sets of calculations on the DDM Template (or you can create your own). Make sure you include sources for your data and show the formulas you used (using variable names) as well as the calculations (using your numbers).

Make WACC and NPV model

ease combine your Chp.7 and Chp.9 models so that there is one spreadsheet that shows how much total money the company will raise from both stock and debt issuances. Assume the amount raised by the company is the total amount of capital for the company. Once you have combined the two models, please add the following outputs to your model:
weight of equity
weight of debt
WACC
Your model should also add the following input:
tax rate
Please pay attention to ascetics. Your model should be easy to navigate and formatted in a way that is user-friendly (use borders and boxes to help organize all of the information).
NPV MODEL
You are thinking about making a 14 year private equity investment. You build a model to determine whether you should invest in the private equity investment. Your model’s outputs are:
The NPV of the 14 year project
The IRR of the 14 year project
The Decision to “ACCEPT” or “REJECT” the project (this is best done using an ‘IF’ statement)
Your model requires the following inputs:
Initial investment amount that you must pay today (at year 0)
A % loss of the initial investment that is experienced each year during the first 5 years (e.g., the investment loses 2% of the initial investment each year for the first 5 years)
A % gain on the initial investment that is experienced each year during the remaining 9 years (years 6-14) (e.g., the investment gained 2% of the initial investment each year during years 6-14)
Expected Return => if from investor perspective = WACC => if from corporate perspective Please build the model so that it is user friendly, represents all cash flows on a timeline, and directly solves the quiz questions (see rubric below). If you are unable to build the model, you may answer the selection “watch video” on the first quiz question, which will show you a step-by-step video (you will lose 3 points if you select “watch video”). If you do not need to watch the video, then select “do not watch video” and you will not get any points deducted from the quiz.WACC MODEL
If you have built the model correctly, you will have a WACC of 8.2% given the following inputs:number of bonds issued = 50,000
principal per bond = $1,000
coupon rate = 5.0%
Yield-to-Maturity = 10.0%
Dividend at year 0 = $3.55
Dividend Growth rate during years 1-10 = 5.5%
Dividend terminal growth rate = 2.2%
Beta of company = 1.2
Risk-free rate = 3.0%
Expected market return = 8.5%
Total shares of stock = 500,000
Tax rate = 35.0%
NPV MODEL
If you have built the model correctly, you will have a NPV of $488 and IRR of 8.6% given the following inputs:Initial investment = $12,500
% loss of the initial investment from (years 1-5) = -0.5%
% gain on the initial investment (years 6-14) = 25.3%
expected return = WACC from WACC model above
STEP 3: Use Model to Answer Quiz Questions
Your model should directly solve the quiz questions by simply changing the inputs of the model. Please note that even if you answer the quiz questions correctly, you still can lose points (per the rubric below) if your model is not built correctly.

Investors Diary Report

This is a contest for students of FNCE 625. By the end of the term you want the highest dollar value for your portfolio. You have $100,000 CDN to invest in any type of investment you wish, including hedge funds, futures, forwards

Discussion board Stock-Trak Review

The forum this week will focus on our second and final discussion relating to Stock Trak. Recall at the start of the course you selected securities to monitor. Now with the completion of specific content related to company evaluation and valuation, it’s time to assess how you might have changed your selection process.
Find your portfolios performance history from early on (week 1-2 through now) and reflect on how it has changed over time.
Find the industry or index benchmarks that are also available on stock track and compare them to your performance with a reflection.
Tell your classmates specifically what you have learned regarding company evaluation and stock valuation and how this knowledge can be used by you as a future investor, manager, and or owner of a business enterprise. For example, what decisions made by management impact the financial statements used by analysts who gauge profitability, risk, asset utilization, liquidity, and solvency and convert these calculations into intrinsic values?
Post your responses to two peers(100 words per reply)

acg3024 statement of cash flows.

The answer should be based on http://solr.bccampus.ca:8001/bcc/file/fa667d22-26c…
After the answer I need help to response to two peers.
Explain the purposes and uses of the statement of cash flows.
Discussion Instructions (Initial Post is Require before “Viewing” Peer Posts): You are required to submit a substantial response. A substantial response is one that stays on topic and fully addresses the assignment in a clear, concise, and meaningful manner. Substantial Content refers to providing relevant content toward the actual topic of the discussions. This includes quality input, questions and information in your discussion posts and responses to peers.
The deliverable length of initial posting must be at least 150 words. After the initial posting, students are required to respond to at least two (2) peers responses. Peer responses must be at least 50 words for each response, in order to receive full credit. Discussions must be the students original thoughts based on the topics from the “Open Educational Resource” (OER) Course Textbook and/or other referenced sources. Direct quotes from references must be less than 10 words. Plagiarized discussions will result in a “0” for the submission of this assignment. Please review postings for sentence structure, grammar and punctuation errors.
Late submissions are not accepted for discussions.
All assignment(s) derive from the OER Textbook. For academic purposes, at least 1 APA formatted reference is required pertaining to the topic(s).

acg3024 financing with long-term debt and financial leverage.

The answer should be based on http://solr.bccampus.ca:8001/bcc/file/fa667d22-26c…
After the answer I need help to response to two peers.
Describe and discuss the advantages and disadvantages of financing with long-term debt and prepare examples showing how to employ financial leverage.

Discussion Instructions (Initial Post is Require before “Viewing” Peer Posts): You are required to submit a substantial response. A substantial response is one that stays on topic and fully addresses the assignment in a clear, concise, and meaningful manner. Substantial Content refers to providing relevant content toward the actual topic of the discussions. This includes quality input, questions and information in your discussion posts and responses to peers.

The deliverable length of initial posting must be at least 150 words. After the initial posting, students are required to respond to at least two (2) peers responses. Peer responses must be at least 50 words for each response, in order to receive full credit. Discussions must be the students original thoughts based on the topics from the “Open Educational Resource” (OER) Course Textbook and/or other referenced sources. Direct quotes from references must be less than 10 words. Plagiarized discussions will result in a “0” for the submission of this assignment. Please review postings for sentence structure, grammar and punctuation errors.

personal balance sheet

(1) To develop a personal balance sheet as of Dec 31, 2021 on a worksheet provided; and set two goals to make your net worth higher.
(2) To answer questions based on the personal balance sheet developed.
For currently irrelevant items, please put zeros.
No worries about irrelevant items; just leave those blank. Balance sheets are supposed to be updated on a regular basis and you will see currently irrelevant items relevant later in your life. Many financial advisors recommend updating personal balance sheet on a monthly basis, and evaluate the trend.
In terms of the goal setting, please be specific as possible. The more specific, the more likely you achieve the goals. For example, “save $100 each time my paycheck is paid.” is much better than “save more.”

715 Quantative decision-making

Based on the articles selected attached below, discuss one or several of the themes: quantitative analysis and decision making, quantitative analysis models, application of quantitative analysis in real situations, the role of computers and spreadsheet models in the quantitative analysis approach.

Finance – Market Efficiency using EBITDA ratio

You collect data for a comparable firm to the business you are trying to sell. The comparable firm has:
Debt = 100,000
Shares Outstanding = 10,000
EBITDA = 60,000
Excess Cash of $35,000
Share Price = $60
Using the Enterprise Value to EBITDA ratio, what is your estimate of your company’s value if it has $6,000 of EBITDA?

Bonds Calculation

Jackson Corporation sources and distributes pharmaceutical products in the United States and internationally. Its pharmaceutical distribution segment distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, outsourced compounded sterile preparations, and related services to various healthcare providers. The company wants to raise long-term debt of $10 million for research and development by issuing corporate bonds. The financial manager of the company, Chris Doughman, MBA is working with First Investment Bank to issue the bonds. The investment bank is providing consulting and advisory services to Jackson Corporation. Chris must make presentations to the investment banking firm to enable it to get the information needed to prepare the bond indenture.
Chris stated in the presentation that the bond would have 15 years to maturity, interest would be paid annually, and the bonds would have $1,000 par value. The coupon interest rate, according to Chris, would be determined using the following equation: rd= r* IP MRP DRP LP, where rd is quoted market interest rate, r* is real risk-free rate, IP is inflation premium, MRP is maturity risk premium, DRP is default risk premium, and LP is liquidity premium. Chris has gathered the following data:
Characteristic
Bond
Time to maturity
15 years
Real risk-free rate
2.00%
Inflation premium
2.20%
Maturity risk premium
2.50%
Default risk premium
2.40%
Liquidity premium
0.90%
1. Calculate the quoted market interest rate for the corporate bond using the equation.
2. Using the market interest rate calculated above, determine the coupon payment i.e., the dollar amount to be paid every year to bondholders.
3. First Investment Bank is using the answers presented in questions 1 and 2 to value the bond. Calculate the present value of the bond if the yield to maturity is 10%.
4. Suppose that three years later Jackson Corporation’s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have $1,000 par value, and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. Calculate the current market price of the bond.
5. Another company, Charter Corporation has issued 2,500 debentures with a face value of $1,000. The bonds have 10 years to maturity. The bonds have a coupon interest rate of 8% that is paid semiannually. What dollar amount of interest per bond can an investor expect to receive every 6 months?
6. Charter Corporation bonds have 10 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 9%. The coupon rate is 8% that is paid semiannually.
i. Calculate the selling price of this debenture
ii. Calculate the current yield of this debenture.
7. Kahiki’s Foods Inc. corporate bonds have 10 years remaining to maturity. The bonds have a face value of $1,000, and a coupon rate of 10%. The company pays $100 interest per bond annually. The present value of the bond is $900. The bond is a callable bond. Calculate the yield to maturity of the bond (note: PV is negative because it is a cash outflow, i.e., it costs $900 to purchase the bond).
8. Some bondholders of Kahiki Foods do not understand the difference between yield to maturity and yield to call on callable bonds. Explain to them the difference between yield to maturity and yield to call.
9. Describe the following types of bonds:
i. debentures
ii. convertible bonds
iii. junk bonds
iv. callable bonds
10. Jackson’s corporate bonds are being reviewed by some credit rating agencies. Rating agencies do a good job of measuring the average credit risk of bonds and providing information to lenders whenever there is a significant change in credit quality of bonds. One of the credit rating agencies, Moody’s Investor Services has downgraded Jackson’s bonds rating from Aa to Baa. Identify three factors that might have contributed to the low ratings of Jackson’s bonds.
Submit your answers in a Word documen