FINANCIAL MANAGEMENT – FINA 1082

hello my name is bilal nasir and i am a student of greenwich university.my course work details are attached every thing is written in it i need this work back with in 20 days for review there are two things in this work one is calculation and second is words. so please check the attached file and tell me about this one thing more i didnt understand the references what do you mean about references in paper topic heading thanks

Financial management

QUESTION 2
Stock valuation of two companies
Two companies selected: 3M (industrial) & Cardinal Health (Health and social care)
Valuation for 3M
3 M
High growth phase
Particulars Amount
Dividend per share 4.1
Risk-free rate (Rf) 0.51%
Beta value (β) 1.17
Market return (Rm) 2.66%
Risk premium Rm-Rf 2.15%
Required rate of return on investment
(r) Rf+(Rm-Rf)*β 3.03%
Payout ratio 50.90%
ROE 35.08%
Growth rate
(1-Payout
ratio)*ROE 17%
Year Expected dividend
0 4.10
1 4.81
2 5.63
3 6.60
4 7.74
5 9.08
Year
Expected
dividend
Discounting factor at
3.03%
Discounted
values
1 4.10 0.97 3.98
2 4.81 0.94 4.53
3 5.63 0.91 5.15
4 6.60 0.89 5.86
5 7.74 0.86 6.67
Total present
value 26.19
Stable growth
Dividend per share 4.10
Required rate of return (r) 3.03%
US inflation rate 0.20%
GDP growth rate in US 2.10%
Stable growth rate (g) 2.30%

Dividend in year 1 4.19
Value of stock DPS(1)/(r-g) 574.56
Discounted value in 5 years 494.90
Overall stock value
Value in High growth phase 26.19
Value in stable growth phase 494.90
Stock's intrinsic value 521.09
Valuation for Cardinal health
Cardinal health
High growth phase
Particulars Amount
Dividend per share 1.55
Risk-free rate (Rf) 0.51%
Beta value (β) 0.73
Market return (Rm) 1.69%
Risk premium Rm-Rf 1.18%
Required rate of return on
investment (r) Rf+(Rm-Rf)*β 1.37%
Payout ratio 36.50%
ROE 20.90%
Growth rate
(1-Payout
ratio)*ROE 13%
Year Expected dividend
0 1.55
1 1.76
2 1.99
3 2.25
4 2.55
5 2.89
Year
Expected
dividend
Discounting factor at
1.37%
Discounted
values
1 1.55 0.99 1.53
2 1.76 0.97 1.71
3 1.99 0.96 1.91
4 2.25 0.95 2.13
5 2.55 0.93 2.38
Total present
value 9.66
Stable growth
Dividend per share 1.55

Required rate of return (r) 1.37%
US inflation rate 0.20%
GDP growth rate in US 2.10%
Stable growth rate (g) 2.30%
Dividend in year 1 1.59
Value of stock DPS(1)/(r-g) -170.76
Discounted value in 5 years -147.08
Overall stock value
Value in High growth phase 9.66
Value in stable growth phase -147.08
Stock's intrinsic value -137.42