Finance Homework 320/350

“Macroeconomics and Industry Analysis” ;Please respond to the following:

From the e-Activity, examine each industry’s price-earnings ratio and dividend yield. Determine whether or not the differences make sense in light of their different stages in the industry life cycle. Support your position.

eActivity – Go to Yahoo! Finance’s Website and review the price/book ratios for Medical Instruments and Supplies (http://biz.yahoo.com/ic/520.html) and for Electric Utilities (http://biz.yahoo.com/ic/911.html). Be prepared to discuss.

Choose an industry in which you are interested, and predict its performance within the next three years. Provide support for your prediction.

“Equity Valuation” ;Please respond to the following:

Justify the circumstances which are best suited for the dividend discount model versus the free cashflow model to value a firm. Provide an example of each.

Create an argument for using the multistage dividend discount model for equity valuation. Provide support for your argument.