Dear Freelancer, please write the task, 600 words APA-style. If needed, use 1-2 other academic sources. Attached are the calculations for the first part of the essay, only the questions answers are needed.
MAIN DETAILS: This is what I need help with. I used Kroger with a current stock price of $55.39.
- Current Stock Price:
- To make comparisons to the current stock price, go to the Equity pricing tab. There you can see the recent closing price, a High, a Low, and an Average, among other statistics.
- Write a 600 words essay in APA format that includes:
- A brief description of the company: Which company did you choose and why is it of interest? Does it manufacture interesting products or provide innovative services? Have recent news events brought this company to your attention?
- A compare and contrast of the estimated stock value from your Constant Growth Model to the current stock price.
- Your calculations from the Constant Growth Model along with the current stock price.
- A paragraph on changes to the inputs that would allow your Constant Growth Model to provide a value consistent with the current stock price. What change in the dividend growth rate could be used to equate to the current stock price with the discount rate provided? Would a change in the discount rate, higher or lower, influence the valuation? How?
- An explanation as to why the estimated stock price from your Constant Growth Model should or should not be relied upon given the inputs you used.
- Refer to the observations made in Action Item 4 regarding analyst Average Target Price and Recommendations. Is there a clear recommendation? Your response will demonstrate that you have examined the Broker Summary in Mergent.
- A compare and contrast of the Target Prices from your Stock Valuation Using Multiples to the current stock price. Show your calculations along with the current stock price.
- Answers to the following:
- Would you invest in this stock? Why or why not?
- Based on your valuations in the Research Project, would you characterize your stock as undervalued or overvalued? Explain.
ATTACHED:- details- source (calculations)
