Determinants of security value include company profitability, operating growth, and risk. The first determinant was covered in Step 1. In Step 2 we complete our analysis with:
(a) cost of capital (debt, equity, weighted) and
(b)growth forecast using internal measurements and external data from industry, and macroeconomic analysis.
Similar to Step One, this step will require some research along with calculations. Remember to use the resources provided in the Library Research Guide on your Ulearn site.
Be sure to show all work completed by you and necessary to forecast your company’s growth and cost of capital.
When Step Two is completed, you will have demonstrated a thorough analysis of the risk and expected growth of your target company. A sample for each part of this step is provided here as a guide. You of course will need to use a different company for your project.
Finally, to receive proper credit for your submission be sure to include both in-text citations and complete reference page.
A sample from a prior class is attached here for guidance. Remember the company used in the sample may not be used by you for your submission. Please review the 10K Project Rubric (docx) for details about how you will be graded.
Submit Step 2 by Sunday at 11:59 pm ET, June 12.