Valuation of Stock, Capital Budgeting Analysis, and Risk and Return Analysis in Finance

Finance
Student’s Name

Introduction
The main focus of this presentation is on
the following topics:
• Valuation of stock
• Capital budgeting analysis
• Risk and return analysis

Valuation of stock
• Value of FMG and Ozl has been evaluated
on the basis of various ratios. The list of
the ratios are as follows:
• Market value of equity to book value of
equity ratio
• Return on equity
• Dividend per share
• Sustainable growth rate per annum
• Intrinsic value

Valuation of stock
Description Formuals FMG OZL
Market value of
equity to book vakue
of equity ratio
Market value of
equity / book vakue of
equity ratio 1.67$ 1.09$
Return on equity Net profit / Total
stockholder's equity 21.502% 9.181%
Dividend per share Dividend paid /
number of shares 0.24$ 0.14$
Sustainable growth
rate per annum
Return on equity * (1-
dividend payout ratio) 13.75% 7.51%
Intrinsic value Dividend (1+ growth
arte) / (required rate
of return - growth
rate) 108.52$ 2.33$