a :
Using information from Task 1 calculations and other information that you
deem appropriate to arrive at the valuation of a Bovis plc share
In doing so critically evaluate the Price-Earnings and Dividend Growth models
used in your calculations and relate your calculations to current and historic
share price information as appropriate.
Define what is Price-earning and Dividend Growth models
What is strengths and limitations for both models, must connect with former
calculations (from 2 aspects theory and figure)
If g and beta are changed, what would happen? You could recalculate g and
beta
(p/e in 2015 in task 1 is inaccurate, you should recalculate it if you want to.
(tutor’s trap)
b:
Discuss whether you would advise your client to purchase shares in Bovis plc
on the 5 th May 2017
you should predict the share price in the website by yourself
And give a series of reasons for buying. Why do not buy ? Reason is very
very important
Sample Solution