I need someone to review, proofread, and edit an assignment another tutor completed for me. As it is common on this website, everyone is an expert…. and then they turn in the assignment to you and you wonder if they even speak English fluently. I’m not looking for someone to change the commas around and find other meanings for the words. I NEED a ENGLISH WRITING EXPERT who can fix the grammar and make the paper flow better, don’t waste my time.compare_the_values_you_calculated_to_each_of_the_market_prices_for_the_top_twenty_stock_picks.docxCompare the values you calculated to each of the market prices for the top twenty
stock picks. Are your calculations close approximations of the market prices? Why
do you think there are differences?
The stock value, that is, the intrinsic value is different from the market price for
the top twenty stock picks. The intrinsic value refers to the estimated true value of the
common shares. On the other hand, market price is the value of a company, which is
reflected in its stock price. The market price is significantly higher that some intrinsic
values while it is significantly lower for others.
The calculations are not close approximations of the market prices. The intrinsic
value is thus different from the market price. Notably, some stocks had dividends worth
$0.00. It implies that there were no dividends paid at all. The intrinsic value will result to
zero values for the stocks with $0.00 worth of dividends. Also, with the five-year
dividend growth rate, it usually results in extreme values. There is the need to use a
constantly growing dividend rate rather than the compound growth rate calculated using
the dividends at -5 to period 0. For example, stocks that have a positive dividend to a zero
dividend have growth rate of -100%.
The differences in the values also result due to the market auction process that is
unlikely to use fundamental dividend, growth, and risk measures. It is also clear that the
constant growth model and the CAPM have unrealistic assumptions on investor
psychology and the dynamics in the market that are not as they are in the real world.
Thus, the intrinsic stock value is not something that is readily provable. It is only the
private estimates of the worth of the company that may not match the market price of the
stock. It can thus be said that the market price is driven by public opinions and
expectations while the intrinsic stock value is driven by the private and internal opinions.
Therefore, the value is referred to as intrinsic since it does not fully reflect the value of
What are the implications of your analysis to Fred’s choice of stocks?
Fred must make a consideration for more than just the intrinsic value when
considering the stocks to buy. Therefore, the intrinsic value of the stock is not the
indicator of the stocks that he should invest in. Fred must comprehend that the stock
market is coupled with dynamic changes that make the marketing environment
complicated. Decisions regarding the stock to buy must be made based on the good deal
at the time of bidding on the deal. The reason for the choice of stock should be the
profitability of the company since stocks are part of the long-term success of an
organization. Therefore, buying on stock is dependent on the current environment at the
time of buying, which includes the customer base, the general economy, and the industry
Fred must note that it is important the information needed for the choice of stocks
is intangible and it is difficult to measure. However, the company’s financial health is
easily accessible. Thus, there should be a combination of both the qualitative and the
quantitative factors to predict success in stock choices. The CAPM and the constant
growth model formulas cannot predict the exact success. At the same time, there are
inherent risks in the stock market that make stock prices to move than they are
anticipated. They can change faster and unpredictably. There is thus no one way in the
choice of stocks. It is important to consider every stock strategy than just theories and
formulas. The investment strategy chosen should match with the personal risk tolerance,
investment time in devotion of the stocks and the time frame.
Purchase answer to see full
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.