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FFM Assignment 2

This document contains an assignment for a finance for managers course. The assignment is due on January 21, 2023 and is worth 10 marks. The instructor is Muhammad Zeeshan. The document provides analysis of two companies, Pak Suzuki Motors Company Limited and Sui Southern Gas Company Limited, including their stock prices and dividends over a 10 day period to calculate average required investor return and estimate the current stock price based on dividends. For both companies, it recommends buying the shares since the estimated current price is higher than the last traded price.

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ANUS AHMED KHAN
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74 views

FFM Assignment 2

This document contains an assignment for a finance for managers course. The assignment is due on January 21, 2023 and is worth 10 marks. The instructor is Muhammad Zeeshan. The document provides analysis of two companies, Pak Suzuki Motors Company Limited and Sui Southern Gas Company Limited, including their stock prices and dividends over a 10 day period to calculate average required investor return and estimate the current stock price based on dividends. For both companies, it recommends buying the shares since the estimated current price is higher than the last traded price.

Uploaded by

ANUS AHMED KHAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Assignment 2

Finance For Managers–Sun, 8:30-11:3

Due date: Jan 21, 2023


Assignment Marks: 10

Instructor: Muhammad Zeeshan

Name: Anus Ahmed Khan


Campus: IQRA University (Airport Campus)
Enrollment ID: 13286
Email: anus.13286@iqra.edu.pk
ent 2

Sun, 8:30-11:30

21, 2023

mad Zeeshan
1st Company--> PSMC

Pak Suzuki Motors Company Limited(PSMC)


S.No. Date Opening Price Closing Price Dividend
Po P1 Do
1 9-Jan-23 140 136.23 6.5
2 10-Jan-23 139 143.75 6.5
3 11-Jan-23 144.89 139.22 6.5
4 12-Jan-23 139.95 139.38 6.5
5 13-Jan-23 137 138.8 6.5
6 16-Jan-23 136.06 136.47 6.5
7 17-Jan-23 136.97 130.78 6.5
8 18-Jan-23 132.95 131.99 6.5
9 19-Jan-23 133.79 131.71 6.5
10 20-Jan-23 133 132.58 6.5

Avg Investor Required Return=(r1+r2+r3+r4+r5+r6+r7+r8+r9+r10)/10


Avg Investor Required Return= 0.0382590575164502
r 3.83%

For Price P=D/r


P=6.5/0.0383
P=169.71

S.No. Items Symbol Value


1 Dividend Do 6.5
2 Dividend D1 6.5
3 Growth g 0
4 Retention Ratio b 0.8004
5 Return On Equity ROE 0.0999
6 Investor Req Return Avg IRRA 3.83%
7 Current Price Po 169.71

We Should buy these share because selling Price is lesser than Current Price
Limited(PSMC)
Dividend Investor Rquired Return
D1=Do(1+g) r=(P1-Po+D1)/Po
6.5 0.0194999999999999
6.5 0.0809352517985612
6.5 0.0057284836772725
6.5 0.0423722758127903
6.5 0.0605839416058395
6.5 0.0507864177568719
6.5 0.00226326932905017
6.5 0.0416698006769464
6.5 0.0330368487928845
6.5 0.0457142857142858
0.0382590575164502

5+r6+r7+r8+r9+r10)/10
0.0382590575164502
3.83%

han Current Price


2nd Company--> SSGC

Sui Sothern Gas Company Limited(SSGC)


S.No. Date Opening Price Closing Price Dividend
Po P1 Do
1 9-Jan-23 10.9 10.77 2.25
2 10-Jan-23 10.95 10.64 2.25
3 11-Jan-23 11.15 11.31 2.25
4 12-Jan-23 11.33 11.06 2.25
5 13-Jan-23 10.84 10.64 2.25
6 16-Jan-23 10.55 10 2.25
7 17-Jan-23 10.14 9.34 2.25
8 18-Jan-23 9.18 9.76 2.25
9 19-Jan-23 9.9 10.32 2.25
10 20-Jan-23 10.44 10.17 2.25

Avg Investor Required Return=(r1+r2+r3+r4+r5+r6+r7+r8+r9+r10)/10


Avg Investor Required Return= 0.202344601065575
r 20.23%

For Price P=D/r


P=2.25/0.2023
P(o) 11.1196443500404

S.No. Items Symbol Value


1 Dividend Do 2.25
2 Dividend D1 2.25
3 Growth g 0
4 Retention Ratio b N/A
5 Return On Equity ROE 229.30%
6 Investor Req Return Avg IRRA 20.23%
7 Current Price Po 11.12

We Should buy these share because selling Price is lesser than Current Price
Limited(SSGC)
Dividend Investor Rquired Return
D1=Do(1+g) r=(P1-Po+D1)/Po
2.25 0.194495412844037
2.25 0.17716894977169
2.25 0.216143497757848
2.25 0.174757281553398
2.25 0.189114391143912
2.25 0.161137440758294
2.25 0.142998027613412
2.25 0.308278867102397
2.25 0.26969696969697
2.25 0.189655172413793
0.202344601065575

5+r6+r7+r8+r9+r10)/10
0.202344601065575
20.23%

han Current Price

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