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Management
IQF - MSIN0104
This assignment is based on the Dividend Discount Model.
Please review carefully the relevant material as well as the brief before proceeding with
your analysis. Clearly explain your approach, and state the assumptions you think may
be necessary in your analysis, and reference any external source.
Summarize your responses in a report of maximum 500 words and attach an accom-
panying excel spreadsheet, with the data you have collected and your calculations. Your
answers need to be succinct and to the point; your grade will depend on the quality of
the analysis and the clarity of the report rather than its length (longer is not better).
Remark: the goal of this exercise is to come up with your own analysis, given what
you have learned, and the data you have collected. Please submit a single report per
team. At the end of your report, please very briefly summarize the contribution of each
team-member.
IMPORTANT: Please use the following convention to name your files: (Assuming
your team number is 157)
• Name the file of you report: “IQF_CW2_TEAM_157_REPORT”
• Name the accompanying spreadsheet: “TEAM_157”
Instructions
Part 1
• Find information on the fundamentals of AstraZeneca Plc (link 1, Link 2, link 3,
link 4).
• Price its stock using the dividend discount model (choose the version you think is
the most adequate).
• AstraZeneca Plc. last paid a dividend on 13/09/2021. For simplicity, do the pricing
as if we were on 14/09/2021.
Hints:
• By default, I suggest you use a discount rate of 6% (you may choose to use a different
rate, but then you have to motivate your choice carefully).
• Use your judgment to come up with, for example, 3 scenarios on how these funda-
mentals will evolve in the future (pessimistic, neutral, optimistic). You may provide
information on the company to back up your scenarios. As always, be very careful
to reference any source you use (I am not interested in you trying to summarise or
reproduce professional stock analysis, the goal of the exercise is different).
1
Part 2
Compare your numbers to the price at which the stock was trading on 14/09/2021
• How do your findings compare to it? Are you surprised? Why? Remark: if your
results are off, it is much better to discuss why you think it could be the case than
to modify your scenarios until you find numbers that are more in line.
Part 3
Tesla (link 5) has never paid a dividend. Try to use the Dividend Discount Model to
discuss the current value of Tesla’s stock. (Again, I am not interested in you summarising
the views of analysts, rather I am interested in how you can use what you have learn in
class to provide your own insights)