Recalculate the intrinsic value of Honda using the three-stage growth model given above is the
spread sheet.Treat each of the following scenarios independently.
Required:
(a)
ROE in the constant-growth period will be 11.6%.(Round your answer to 2 decimal places.)
Price
(b)
Honda\'s actual beta is 1.31(Round your answer to 2 decimal places.)
Price
(c)
The market risk premium is 10.1%.(Round your answer to 2 decimal places.)
Price
Recalculate the intrinsic value of Honda using the three-stage growth model given above is the
spread sheet.Treat each of the following scenarios independently. Term value Investor C 07
ROE 2.01 12 Value line 803 58
Solution
aIntrinsic value= P.V of cash flows
Dividend remains the same as in the question but term value changes due to change in growth
rate (11.6%*.7)=8.12%
P.V of dividends=22.60-(74.86*.165)=10.25
Term Value=2.92(1+.0812)/(.119-.0812)=3.157/.0378=83.52
Intrinsic value= 10.25+83.52*.165=24.03
b.New Ke=3.5%+1.31*8%=13.98%
New Discounting factors
2009= .877
2010=.77
2011=.675
2012=.592
2013=.52
2014=.456
2015=.4
2016=.351
2017=.308
2018=.270
2019=.237
2020=.208
2021=.182
2022=.160
2023=.140
2024=.123
Intrinsic value=8.88+74.86*.123=18.09
(c ) ke= 3.5%+1.05*10.1%=14.105%
New Discounting factors
2009= .876
2010=.768
2011=.673
2012=.59
2013=.517
2014=.453
2015=.397
2016=.348
2017=.305
2018=.267
2019=.234
2020=.205
2021=.18
2022=.158
2023=.138
2024=.121
Intrinsic value=8.82+74.86*.121=17.88.
Recall a time when you experienced a problem as result of poor commu.pdf
1. Recall a time when you experienced a problem as result of poor communication. What were the
causes of and possible remedies for the problem?
Solution
The causes of my poor communication was lack of confidence, shyness, fear to face gatherings.
The possible remedies were support from friends, encouragement from boss, and self confidence.
Without proper communication an individual is of no use, but to overcome this problem self
confidence, motivation and support from friends and coworkers play a dramatic role.
