The stock chosen is Johnson Controls INC (JCI). The calculations should be done in excel. Please answer the following questions.
Market Capitalization Rate.
What is your market capitalization rate?
What did you choose for a risk free rate? Why?
What did you choose for a market risk premium? Why?
How did you select/determine the appropriate beta?
Results.
How did you calculate your stock's intrinsic value? How did you arrive at a terminal value? What was your terminal value? What were your results?
How do your results compare to the stock's current price? According to your calculations, is your stock overpriced, underpriced, or correctly-priced?