stock valuation using GESKE model (excel VBA)
Budget: $2 – $8 USD
The Geske model. Use the two-period Geske model and:
1. Collect one-year daily stock prices for 10 cornpanies; Compute daily returns, and then mean and standard deviation.
2. Collect (1) market cap, (2) current and (3) long-term liabilities of each firm.2
3. Run the model to solve for 553 93k and asset volatility (for each of the 10 firms).
4. compare to the book value of each firm.
5. Report the one and two year default probabilities of each firm.
1. Collect one-year daily stock prices for 10 cornpanies; Compute daily returns, and then mean and standard deviation.
2. Collect (1) market cap, (2) current and (3) long-term liabilities of each firm.2
3. Run the model to solve for 553 93k and asset volatility (for each of the 10 firms).
4. compare to the book value of each firm.
5. Report the one and two year default probabilities of each firm.