Business Finance and Investment Appraisal
Week 3 Seminar 1: Technical Analysis of Stocks
1. Identify two banking stocks currently traded in the London stock exchange. For these companies report and comment on their:
• Return on equity
• p/e ratio
2. For the two companies named above:
• choose two forms of ‘technical chart’ and indicate on them, if possible, one point where the chart indicates to ‘sell’ and on point where the chart indicates to ‘buy’.
• Explain your answers and the method used.
Peer Assessment Table
Please complete this table giving your assessment of the relative contribution of the members of your group including yourself.
Group member Aspect of Group Work Well below average
1 Below average
2
Average
3 Above average
4 Well above average
5
Intellectual
Effort
Co-operation
Intellectual
Effort
Co-operation
Intellectual
Effort
Co-operation
Intellectual
Effort
Co-operation
Intellectual
Effort
Co-operation
Aspects of group work:
Intellectual Leadership = individual contribution to the development of ideas, quality and organisation of work
Effort = willingness to work hard for the team to produce the best possible collective result
Co-operation = willingness to co-operate with other team members to use the abilities of all members to produce the best possible collective result
ID4248L Business Finance and Investment Appraisal
Session 7: Excel use and Investment Appraisal
(1) Bond valuation:
A company holds 100 identical bonds – each bond is sold at par value of £1000, and pays 5%. The bond period is 10 years, but the company will dispose of these after 4 years and expects interest rates at that time to be 6%.
The relationship between bond values and interest rates can be stated (based on Keynes’ work):
The firm operates with a discount rate of 9%. Build up the ‘cash flow forecast’ for this bond portfolio and evaluate its Net Present Value.
(2) Chesherton fibres:
Load the spreadsheet ‘Chesherton Fibres model answer_Nov07.xls’. There are several parts to note
• Rows 3 to 29 – this is a ‘data entry’ area.
o It provides key values for Investment costs (land, vehicles, etc.), variables costs (materials, etc.), fixed costs (admin, etc.).
o Altering the values in these ‘change cells’ can be automatically fed through to all the following calculations, so that different scenarios can be easily tested.
• Rows 34 onwards provide the relationships that give specific values, e.g.:
Row: Relationship Function
Tb1 INVESTMENT COSTS Column B Column B
35 Cell B4 (land investment cost data entry) x B12 (spread of land investment cost) =b4*b12留学生论文代写网代写留学生论文,英国硕士论文,澳洲论文
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