Quantitative Methods For Financial Markets

You are required to choose a publicly traded company and estimate the intrinsic value of its ordinary shares using DDM. You should1) Provide rationales for your choice of company and your choice of DDM• Brief description of the chosen company’s profile
• The suitability of DDM for the chosen company
• Justify your decision on the number of stages of dividend growth
2) Present details of determining dividend growth rate(s)• Method of estimating dividend growth rate(s)
• Workings of deriving dividend growth rate(s)3) Estimate the required rate of return using CAPM model based on OLS method
• Prepare data (minimum requirement: monthly data over last five years) and describe data• Specify and estimate the model (i.e., perform the regression)• Discuss the estimation results4) Calculate the intrinsic value5) Draw conclusion• Summarize estimation results
• Critique DDM, CAPM, and OLS6) Submit both word and excel document

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