Date of Award

Spring 5-15-2020

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Mohamed Elbannan

Abstract

By using the Corporation Valuation Model based on discounting expected free cash flows at the weighted average cost of capital I have forecasted the value of Marten’s stock on December 31, 2019 to be $11.65. Their most recent financial statements showed a large growth in sales with each of their operating segments continuing to constantly grow. Their capital structure most recently consisted of all equity and no debt for financing. Their cost of equity is 10.02% which is higher than their cost of debt of 8.95%. After conducting my analysis of Marten stock, I have determined a sell recommendation as the value of the stock I have forecasted is $9.84 below or almost half the market close price on December 31, 2019.

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