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Problem:

1. Calculate a value for what the two stocks are worth:

A. McDonalds Corporation stocks

B. Burger King Stocks

2. If the stock pays a dividend, use the expected dividends model as the basis for the stock value, or you can use the constant growth model, or the free cash flow valuation model, which ever of the three is appropriate.

3. Make and justify any assumptions you make. You may use as many models as you like. Discuss your answer.

4. Given this analysis would you buy any of these stocks? Explain why?

Explain comprehensively and show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91147092

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