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Vanilla stock valuation(Part 1 and & 2 both)…Complete Assignment! Thanks

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Part I;Deliverable Length: 700-1000 words;Understanding how to properly value a vanilla bond is essential for finance. Find a company with debt and that pays dividends. You can use the following stock screener to find a company: http://www.google.com/finance/stockscreener. Add the criteria of long-term debt to assets to ensure the company has debt. Add the criteria of dividend per share. Find the company?s financial pages at: http://www.sec.gov/edgar.shtml.Look at the long-term debt on the balance sheet. Determine the coupon price, the length until maturity and the yield to maturity. Calculate today?s price of the bond.;List the pertinent information on the bond you chose and then Calculate the price of one bond from one company.;Choose another company, find a bond, list all pertinent information and calculate today?s price.;Which bond is receiving the better price? Explain your answer.;From a time value of money frame of mind, what does each rate say about the viewpoint on the time value of money?;What does that tell you about the credit rating of each company?;Which company has a better credit rating? Explain your answer.;Based on the credit rating, which company do you think the bank feels more secure will pay back the loan? Explain your answer.;Why does the bank charge more interest for one company than another?;What does the credit rating say to an investor?;Which bond looks more attractive from the company?s view point? Explain why you chose the answer you did.

 

 

Part II;Deliverable Length: 700-1000 words;Understand how to properly find the value of a stock using the dividend growth rate is a fundamental building block in valuation. Using the same two companies, evaluate each stock using a constant dividend growth model.;Calculate the future growth rate for both companies.;Which stock has the better growth rate? Do you agree with this assessment? Explain. Support your answer with either a description of a new product growth or from past growth performance.;Calculate the future stock price for both companies.;From a time value of money point of view stand point what does the calculated stock price say about the market?s view on the time value of money for each stock?;Compare the calculated stock price with the current stock price for both companies.;Is either stock under or over priced? Explain.;Should an investor purchase either of those stocks?;Should one stock outperform the other?;Based on the ratings found in Phase 4, does one stock seem more financially healthy? Explain.;Does this financial health make a stronger case to invest in the stock? Explain.

 

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