Guideline for Term Paper

Type: Individual

Assessment weight =20% (increased by 5% as it was 15% in the course outline)

Select one company from your simulation

Carry out industry analysis and company of the selected company

Calculate the Sustainable Growth Rate (SGR) with interpretation

Calculate the cost of equity with analysis and interpretation

Calculate the value of the stock by using constant growth model, Analyze and interpret the result

Assume that the sustainable growth rate that you have calculated and used for stock valuation using
constant growth model, with increase / decrease by 2% to 6% (every year, I leave this to you whether to
increase to decrease the growth rate and by how which- It should depend on your SGR, company and
industry analysis) for the next five years and after five years it will remain constant forever (please
identify the constant growth based on your company analysis and assumptions). Then calculate the
intrinsic value of the stock by using 2 stage model.

Finally, calculate the value of the stock by using justified P/E.

Draw your analysis interpretation recommendation comparing all three analysis and based on the
industry, company and market analysis.

Submission deadline May 23, 2020. You are required to submit both soft copy and the excel of
calculation