This document presents a comprehensive case study analysis focusing on investment and portfolio management principles. Part A of the case study delves into the valuation of equity shares using a dividend discount model, considering both high and low growth rates over different periods, and advising on purchase decisions based on the calculated share price. The analysis includes detailed calculations to determine the intrinsic value of the share and assess the potential for positive growth opportunities. Part B shifts the focus to free cash flow to firm (FCFF) calculation, providing a step-by-step breakdown of the process, including the computation of EBIT, tax, depreciation, capital investments, and changes in working capital. The second case study examines bond valuation, specifically focusing on the computation of bond duration and convexity. The analysis includes the calculation of Macaulay duration and the sensitivity of bond prices to yield changes. Additionally, the study computes bond convexity to understand the relationship between a bond's price and yield changes. This case study provides a practical application of financial concepts and valuation techniques.
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