Please write a short (4 page) paper recommending a “buy”, “hold” or “sell” based on the relationship between the stock’s price and its calculated “value.” Students will use the Capital Asset Pricing Model and discounted cash flow analysis to determine “value”. http://www.moneychimp.com/articles/valuation/dcf.htm?Kc=17.00
Please explain how you selected the relevant inputs for DCF and CAPM.
Please discuss whether these assumptions are likely to be conservative or aggressive.
Please discuss the output of the model and your conclusion/recomendation to SELL or HOLD based on it.
Feel free to include any other brief observations about the equity that may be relevant for your recommendation