Assignment:
Instructions & Recommendations for Preparing the Course Assignment
Valuation of Financial Institution:
The purpose of this note is to carefully explain the general expectations and requirements for the Valuation of Financial Institution and Technical Analysis Assignment that is to be prepared for FINC 440. The information and materials presented here are intended to make sure that you clearly understand the general expectations and that there are no misunderstandings about what is to be done and what is expected.
Please review this material so that you are familiar with the specific requirements that are be followed in the preparation and submission of the Assignment.
1. Prepare a valuation of a large financial and banking institution. This should involve: (1) Dividend Discount Model valuation; (2) Valuation by Comparables (use multiples - Price to Earnings Ratio, Price to Book Value Ratio, etc.; Morningstar.com has several ratios under "Valuation"); and, Damodaran's Excess Returns Model (Excel model provided).
2. Explain the principal assumptions used in the DDM valuation?
3. Are the valuations consistent - why or why not?
4. What special challenges or issues did you encounter with the valuations?
The five class Assignments are intended to be constructive learning experiences. They are designed to show students how to prepare analytical reports in finance using critical thinking, research, and writing skills. The following outline is to be used for each Assignment; these titles are the required subheadings for the sections of the written report:
1. Introduction - The Introduction must include:
(a) A review of the Assignment purpose, research methods and the principal information sources, and other information related to the completion of the analysis.
(b) The introduction should also include an overview of the sections of the paper that follow. (1/2 to 1 page)
2. Analysis Section - The body of the report is to address the assigned topics and questions. It is essential that students include appropriate in-text reference citations in APA format:
3. Summary / Conclusion - The summary or conclusion should review the major observations, conclusions and recommendations developed in the analysis. No new material should be introduced in this section. (1/2 to 1 page)
4. References - Provide list of references in APA format.
Attachment:- Excess returns model.rar