Explain why the actual stock price may be higher or lower


Finance
Team Presentation Guidelines:

Business Case 1 (PowerPoint Presentation required to be delivered by each team)

Topic - Choose two publically traded firms that issue dividends, both in the same industry, and perform the following evaluation:

The company we chose are HP and Dell.

1) Identify the financial ratios for each firm, using the ratios in Table 3.8, Chapter 3 of the textbook, categorizing the ratios as indicated in the Table: liquidity, long term solvency, asset management, profitability and market value. Excel model.

2) Compare the performance of the firms based on a comparison of the ratios and provide a commentary on which firm performs best in terms of each of the 5 categories of ratios above. Excel model, Executive Summary and PowerPoint.

3) Using the dividend growth model along with the compound average growth of the dividend over the past 5 years (if available), identify the calculated stock price of the firms and compare to the current stock price. Excel model.

4) Explain why the actual stock price may be higher or lower, referencing current information on the firm, market conditions and the economy. Executive Summary and PowerPoint.

You may want to use Yahoo Finance or a similar site to obtain this information. Allow 8-10 minutes for the presentation and 2-3 minutes for questions. See the syllabus for other details on the presentations.

Attachment:- Common Financial Ratios.rar

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Financial Management: Explain why the actual stock price may be higher or lower
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