Stock Listing and Valuation

 The Pound Land Corporation is a public limited company. The organization operates in the retail industry. The organization was founded in 1990, April.  The founders of the organization were Dave Dodd and Steven Smith. The headquarters of the Pound Land Corporation is in England. The organization has 450 retail centres. The co-founder of the organization is David Dodd, (Michael, 2010). The chairman of the Pound Land Corporation is Colin Smith. The CEO of the Pound Land Corporation is Jim McCarthy. The organization offers grocery products, consumer products and electrical products. The organization reported revenue of 642 Million, (Baker, 2009). The operating expense for the Pound Land Corporation was recorded to be 16 million.  The profit of the Pound Land Corporation was 11.8 million. The employees of the organization were 10020.  The Pound Land Corporation wants to offer their stocks to the London stock exchange market. The stocks are valued at 700 million pounds. The organization has focused the organizational investment plan to originate from the cash flow. The IPO is expected to market the beginning of the end of the private equity ownership for the majority of the shareholders.
1.1. Scope
            The discussion will assess the reasons for the Pound Land Corporation to seek a stock market listing. The assessment of the different valuation techniques for the London stock exchange market will be assessed. The analysis will look at the different approaches that can be applied in the measurement of the management’s support for activities.
1.2. Purpose
 The discussion offers insight on the different stock valuation methods that can be applied in the assessment of the Pound Land Corporation. The evaluation will look at the assessment of the different approaches that will generate the operation of the organization.
1.3. Thesis
The Dividend Discount model is the best for valuing the organization’s stocks
Discussion
2.1. Stock market listing
 The stock market listing supersedes the reason of realising capital or providing a market its share. The Pound Land Corporation offered the stock for listing due to the following reasons. The first reason is for the capital growth. The stock exchange offers the opportunity for the investors and the Pound Land Corporation to increase their control and capital.  The management will be able to attain the overall finances that will increase its competitive advantage in the market.  The second reason is the corporate profile elevation.  The management will have increased publicity to the different stakeholders of the organization. The focus on the different issues of management will allow the increased assessment and auditing of the organization.  The other reason is the improvement of the company’s valuation.
            The Pound Land Corporation invests in the processes due to the institutional investment.  The investment or listing of the stocks increases the organizations acknowledgement by investors. The different stock brokers will be able to assess the different requirements that assure the desires of the organizational approaches, (Zhang, 2010). The management will be able to enrol and encounter with shareholders that have expertise and influence of capital.  The Pound Land Corporation will focus on the assessment of the trading platform.  The management will be able to trade its shares in the stock exchange market, (Lee, 2011). The entry into the London stock exchange will assure the generation of the different tasks that increase the profitability and competence of the Pound Land Corporation.  The other reason for the Pound Land Corporation to enter in to the market listing is the following, (Zhang, 2010). The management can reassure the customers and suppliers on the overall methods that will offer the improvement of the financial and business strength. The management can assess the operations through the assessment of the venture approaches that assure the success of the organization.  The venturing into the business online will require the overwhelming idea for the hearing of the profitable approaches that assure the effectiveness of the business.
2.2. Valuation Techniques
2.2.1. Dividend Discount Model
 The dividend discount model tests the intrinsic value of stock.  This model is the best for the comparison of the nominal growth rate for the economy and the establishment of the dividend payout policies.  The model offers the estimation of the stock in the Pound Land Corporations that is consistent to the payment that can be afforded and accumulated in the process.  This price represents the current value of the revenue streams.  The model incorporates the following assumptions for a valuation.  The rate should be in a stable growth that is based in the area and size that the corporation serves and is regulated, (Baker, 2009). The other assumption is that the stock exchange market wills not all the Pound Land Corporation’s stock to grow to extraordinary rates.  The Pound Land Corporation will be expected to be in stable leverage for the different activities that will be required to be performed.
             The model is analyzed through Gordon Growth Model.  The management will require the investors to purchase the stocks that she expected to obtain from the two types of cash flow dividends and through the periods that were held on the stock.  The rationale of the technique is that the value of the asset and the present value of he expected future cash flow will offer the discounting rate for the overall riskiness of the cash flows, (Louse, 2009).  The obtaining of the expected dividends affects the making of the assumption with regard to the return on stocks that are measured differently with different models, (Lee, 2011). The method requires the valuation of the Pound Land Corporation that is in the steady state of operation. The method assumes that the form will increase its dividends rate at a value that will increase forever.  The model assumes that the Pound Land Corporation’s dividends and other earnings or measures of performance will grow at the same rate as compared to the other stock valuations.

Comments

Post a Comment

Popular posts from this blog

research

The corporate culture has been seen to be an incredible issue that forces the companies to have long-term success in the different issues that they perform.  The strategy that is at a disparity with the organization’s culture makes the organization to be unsuccessful.  The organization’s culture is considered complex and ever changing, (Alice, 2011). The management uses strategy to enable the correction of the corporate governance. This analysis will assess the different relationships between strategy and culture.  The study will assess the different models that allow the formation of the recommendation.  The first relationship for the culture and strategy is as followed. The strategy offers the direction and focus for the culture, (Meier, 2011). The culture, on the other hand, offers the emotions or organic habitat that allows the company to die or live, (Arnold, 2011).  The management of different organizations is required to offer the direction and vision ...
Read more

fastessayz.com Planning Dissertation Research in Business

Image
 Different theories have posed the question of the impact of job satisfaction on employee's performance.  The job satisfaction has been based as the collection of feelings and beliefs of people for the current jobs. The job satisfaction allows the assessment of the positive feeling for the job resulting from the evaluation of the characteristics.  The purpose of the research will be on the identification of the impact of organizational leaders for the contribution of the workers’ well-being. The research will offer different suggestions or recommendations of controlling the state of employee’s satisfaction.  The research will identify the numerous theories explaining the job satisfaction. The first theory is on content.  The content theories suggest the job satisfaction to occur when one need focuses on the self-actualization placed on the individual’s job. Abraham Maslow explains the need of the employees to reach self actualization.  The second theo...
Read more

LIHAO Herb Spice Weed Tobacco Grinder review

Image
*Introduction Many herbs users end up searching for perfection as they grind their weed. I personally got the grinder since I loved to collect unique items. Stylish but elegant grinders offer a unique sense of class and self worth as they grind the weed into small pieces. In the past grinders wee not very effective and were considered as banned. With the removal of weed bans, more of people are seeking stylish but yet again classic LIHAO Herb Spice Weed Tobacco Grinders. Today, seek out a detailed but exquisite weed grinder for your social visits and social moments. The grinder came with some features that I could not fail to mention. *Features 1: stylish appearance In my first purchase of the grinder, I thought to myself how a well-decorated piece of art could turn out to be a weed grinder.  I had to ask the teller if the grinders were genuine grinders or just dummies offered to display how a grinder should look. The teller explained to me that the LIHAO Herb Spice W...
Read more