By walking through a set of financial data for XYZ, this assignment will help you better understand how theoretical stock prices are calculated and how prices may react to market forces such as risk and interest rates. You will use both the CAPM (capital asset pricing model) and the constant growth model (CGM) to arrive at XYZ's stock price. To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Assignment Guidelines:
3 pages answer. Calculation is given in excel. Steps to update the data as per latest risk free rate is given.
3 pages answer. Calculation is given in excel. Steps to update the data as per latest risk free rate is given.
