Pick a stock here: HTML (Links to an external site.).
2020.03.05 update: Once the Google Sheet opens select Data -> Filter Views -> Spring 2020 Available stocks.
DO NOT SELECT A STOCK THAT WAS CHOSEN IN SPRING 2019. YOU WILL RECEIVE A SCORE OF ZERO IF YOU CHOOSE A STOCK THAT WAS CHOSEN IN SPRING 2019.
Maldonado condition: Choose only stocks that have nonzero dividends.
(note: if you have errors after step 6 below consider another stock).
Instructions:
Go to the Bloomberg Lab (LIB2029). You can check out a key from the library front desk if no one is in the room.
Start the Bloomberg program. There should be a little green icon on the desktop and in the Windows taskbar on the bottom of the screen.
If you do not already have a Bloomberg account, create one. Once the Bloomberg App is running press “Enter” to get started then click on “Create a new login.” Follow the on-screen instructions. You should have your phone handy because it will send a verification code. If you don’t have a cell phone, it can send the code via email (I think).
Once your account is created and you have logged in, you can minimize (don’t close) the Bloomberg windows.
Open the Suite (watch the getting started with finbox video if using either finbox suite: YouTube (Links to an external site.).)
BloombergSuite: On a Bloomberg Terminal (20200314 update): XLSX (Links to an external site.).
FinboxExcelSuite: On an internet-connected Windows or Mac computer finbox.com (20200413 update): XLSX (Links to an external site.).
FinboxGoogleSheetsSuite: On an internet-connect computer capable of accessing Google Sheets (20200413 update): HTML (Links to an external site.).
If you have trouble with the Finbox Suite Add-ins/Add-ons do not contact me. Contact Finbox tech support.
On the “Summary” tab and enter your ticker symbol. E.g., MSFT if you chose Microsoft.
New for Spring 2019: Figure out how to modify either the FUTURE-GB or FUTURE-MGF sheets to create your own FUTURE-DDM sheet. See the four important model handout for an overview of the models: PDF Actions .
Also, see this document on implementing the LOGEST() function in Excel: PDF (Links to an external site.).
Give the computer a minute or two to retrieve all the data and perform the calculations. You may have to enable “Auto” in the Excel Formula options or press “Ctrl-=” to initiate a recalculation after changing the ticker symbol.
For each tab in the Excel workbook (a) select all by clicking the triangle in the upper left corner by cell A1 and (b) Copy -> Paste Special -> Values.
Verify the Bloomberg data (blue cells), actually, all cells, are now numbers and not formulas. If step 8 didn’t work, figure out another way. I noticed Elba used two excel windows and did some fancy copying/pasting.
“Save the file as” and add “_static” to the name to indicate you are using static data rather than formulas.
Take the file home (or stay in the lab) and replicate all of the calculations for the “base case” (“Estimate”) by hand. I.e., we are looking for the intrinsic value estimate in this assignment, not the upper and lower limit intrinsic values. You could verify those also for fun. 🙂 This is, in essence, a repeat of HW14 numbers 10, 11, and 12.
Please note: “by hand” does not mean write excel formulas on a piece of paper. “by hand” means translate the Excel formulas to algebraic expressions, plug in the numbers, and show me you get the same intrinsic value estimate as Excel. This also means that you write these calculations by hand on a piece of paper and scan them to PDF. The objective here is simple: demonstrate you can get to the same result as the spreadsheet without using the spreadsheet. This is also an opportunity to show me how much better your penmanship is than mine.
Sample INTC 4 model workbook printout: PDF (Links to an external site.).
Hand-calculations associated with the INTC 4 model sample: PDF (Links to an external site.).
Deliverables options
Option 1:
a) Your “_static” excel workbook, <- This ensures your calculations will match a “snapshot” of the models.
b) Your live finbox worksheet (download as XLSX from GoogleSheets then upload to canvas if using GoogleSheets)
c) A scanned PDF of your handwritten calculations of no more than four pages (one per model – DDM, GB, MGF, RIM) that verify the numbers in the spreadsheet. Download a free PDF creating scanning app for your phone if you don’t have access to a scanner.
Option 2 (RECOMMENDED)
a) Your live finbox worksheet (download as XLSX from GoogleSheets then upload to canvas if using GoogleSheets). Sample: XLSX (Links to an external site.).
b) Print your finbox sheet to PDF, then do your hand calculations. <- This ensures your calculations will match a “snapshot” of the models. Sample: PDF (Links to an external site.).
c) A scanned PDF of your handwritten calculations of no more than four pages (one per model – DDM, GB, MGF, RIM) that verify the numbers in the spreadsheet. Download a free PDF creating scanning app for your phone if you don’t have access to a scanner. Sample: PDF (Links to an external site.).
These files must be uploaded into the Canvas system by the due date and time. I will not accept any other submission.
Grading rubric:
See Section VII.2 of the syllabus.
More information on the models:
Finally, if you need to see more notes on the DDM, GB, MGF, and RIM models, you can take a look at the “Student Investment Fund in a Book 6e” (SIF6e) book chapter 8. Two copies of that book are in the Bloomberg lab. I give you permission to take pictures of the relevant pages for the sole purpose of understanding the material and completing this assignment. Do not distribute my copyrighted material without expressed written consent from the author (me).