## Analysis a stock, fince 231

You currently work as a team at a major investment bank and have been tasked by the Investment Management Division (IMD) to analyse a stock that will be incorporated into a portfolio with other assets from the same market. You will need to prepare a (part of) professional business report that will be submitted to the Investment Management Division (IMD) that answers the questions proposed in this investment brief as well as a final recommendation.

1.There are hints that can be used to assist in completing the question, please follow it and question is below thatUsing the formula g = b * ROE, calculate and list the growth rates, plowback ratios, and ROE for the time period between July 2012- June 2022 (For any financial years

2.within your sample with anomalous plowback ratios and/or ROE discuss why this might have occurred). Calculate the arithmetic and geometric average annual growth rate over this period (remove any rates that are negative from your sample). Also calculate the arithmetic and geometric average annual growth rate for the subperiod between July 2012- June 2019 (pre-COVID-19) and compare the values (remove any rates that are negative from your sample). Do you think this method of calculating growth rates is useful for valuation? Explain in detail why or why not.

3.The values that you have utilised in part2 represent only one possible set of choices for a valuation model. Determine the intrinsic value of your chosen company using a range of values (+1% and -1% for your growth rates and +1% and -1% for your discount rate). You should have a total of 9 intrinsic value calculations like the table below: