Modelling on Stock Investment Valuation for Long-term Strategy

Shamsul Rijal Muhammad Sabri; Wajeeh Mustafa Sarsour

doi:doi:10.11648/j.jim.20190803.11

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Modelling on Stock Investment Valuation for Long-term Strategy

Shamsul Rijal Muhammad Sabri, Wajeeh Mustafa Sarsour

Published in Journal of Investment and Management (Volume 8, Issue 3)

Received: 11 July 2019 Accepted: 7 August 2019 Published: 23 August 2019

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Abstract

This paper developed long-term investment of stock cash flow activities comprising of how yearly investment contribution turns to share units and vice versa, how the series of dividends pay out are declared and finally, how the growth of share units are generated over the years of investing period. These investment model activities form cash inflows and outflows and hence, in return, the performance of this investment model can be evaluated. In addition, this model also constrained that, the yearly dividends obtained were being reinvested together with the annual contributions in accumulating shares. Besides presenting the computation of purchasing and selling of share units and the amount of dividend obtained, this paper contributed in the computation of the growth of the shares in a year, based on share issuance such as share split or consolidation, as well as bonus share rewards. Based on these activities, the net present value (NPV) was derived and the modified internal rate of return (MIRR) was determined by setting up zero-valued of NPV. We illustrated the computation of MIRR by looking at the investment activity towards Prolexus Berhad from the year 2011 to 2015. The increasing of company share prices through years, the encouraging series of dividend rates and generous of the company in issuing shares to the shareholders, were also clearly figured that determined attractive MIRR.

Published in	Journal of Investment and Management (Volume 8, Issue 3)
DOI	10.11648/j.jim.20190803.11
Page(s)	60-66
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Modified Internal Rate of Return (MIRR), Investment Models, Net Present Value (NPV), Share Split, Bonus Issue

References

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APA Style

Shamsul Rijal Muhammad Sabri, Wajeeh Mustafa Sarsour. (2019). Modelling on Stock Investment Valuation for Long-term Strategy. Journal of Investment and Management, 8(3), 60-66. https://doi.org/10.11648/j.jim.20190803.11

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ACS Style

Shamsul Rijal Muhammad Sabri; Wajeeh Mustafa Sarsour. Modelling on Stock Investment Valuation for Long-term Strategy. J. Invest. Manag. 2019, 8(3), 60-66. doi: 10.11648/j.jim.20190803.11

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AMA Style

Shamsul Rijal Muhammad Sabri, Wajeeh Mustafa Sarsour. Modelling on Stock Investment Valuation for Long-term Strategy. J Invest Manag. 2019;8(3):60-66. doi: 10.11648/j.jim.20190803.11

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@article{10.11648/j.jim.20190803.11,
  author = {Shamsul Rijal Muhammad Sabri and Wajeeh Mustafa Sarsour},
  title = {Modelling on Stock Investment Valuation for Long-term Strategy},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {3},
  pages = {60-66},
  doi = {10.11648/j.jim.20190803.11},
  url = {https://doi.org/10.11648/j.jim.20190803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190803.11},
  abstract = {This paper developed long-term investment of stock cash flow activities comprising of how yearly investment contribution turns to share units and vice versa, how the series of dividends pay out are declared and finally, how the growth of share units are generated over the years of investing period. These investment model activities form cash inflows and outflows and hence, in return, the performance of this investment model can be evaluated. In addition, this model also constrained that, the yearly dividends obtained were being reinvested together with the annual contributions in accumulating shares. Besides presenting the computation of purchasing and selling of share units and the amount of dividend obtained, this paper contributed in the computation of the growth of the shares in a year, based on share issuance such as share split or consolidation, as well as bonus share rewards. Based on these activities, the net present value (NPV) was derived and the modified internal rate of return (MIRR) was determined by setting up zero-valued of NPV. We illustrated the computation of MIRR by looking at the investment activity towards Prolexus Berhad from the year 2011 to 2015. The increasing of company share prices through years, the encouraging series of dividend rates and generous of the company in issuing shares to the shareholders, were also clearly figured that determined attractive MIRR.},
 year = {2019}
}

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TY  - JOUR
T1  - Modelling on Stock Investment Valuation for Long-term Strategy
AU  - Shamsul Rijal Muhammad Sabri
AU  - Wajeeh Mustafa Sarsour
Y1  - 2019/08/23
PY  - 2019
N1  - https://doi.org/10.11648/j.jim.20190803.11
DO  - 10.11648/j.jim.20190803.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 60
EP  - 66
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190803.11
AB  - This paper developed long-term investment of stock cash flow activities comprising of how yearly investment contribution turns to share units and vice versa, how the series of dividends pay out are declared and finally, how the growth of share units are generated over the years of investing period. These investment model activities form cash inflows and outflows and hence, in return, the performance of this investment model can be evaluated. In addition, this model also constrained that, the yearly dividends obtained were being reinvested together with the annual contributions in accumulating shares. Besides presenting the computation of purchasing and selling of share units and the amount of dividend obtained, this paper contributed in the computation of the growth of the shares in a year, based on share issuance such as share split or consolidation, as well as bonus share rewards. Based on these activities, the net present value (NPV) was derived and the modified internal rate of return (MIRR) was determined by setting up zero-valued of NPV. We illustrated the computation of MIRR by looking at the investment activity towards Prolexus Berhad from the year 2011 to 2015. The increasing of company share prices through years, the encouraging series of dividend rates and generous of the company in issuing shares to the shareholders, were also clearly figured that determined attractive MIRR.
VL  - 8
IS  - 3
ER  -

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Author Information

Shamsul Rijal Muhammad Sabri

School of Mathematical Sciences, Universiti Sains Malaysia, Penang, Malaysia
Wajeeh Mustafa Sarsour

School of Mathematical Sciences, Universiti Sains Malaysia, Penang, Malaysia

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Plain Text BibTeX RIS

APA Style

Shamsul Rijal Muhammad Sabri, Wajeeh Mustafa Sarsour. (2019). Modelling on Stock Investment Valuation for Long-term Strategy. Journal of Investment and Management, 8(3), 60-66. https://doi.org/10.11648/j.jim.20190803.11

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ACS Style

Shamsul Rijal Muhammad Sabri; Wajeeh Mustafa Sarsour. Modelling on Stock Investment Valuation for Long-term Strategy. J. Invest. Manag. 2019, 8(3), 60-66. doi: 10.11648/j.jim.20190803.11

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AMA Style

Shamsul Rijal Muhammad Sabri, Wajeeh Mustafa Sarsour. Modelling on Stock Investment Valuation for Long-term Strategy. J Invest Manag. 2019;8(3):60-66. doi: 10.11648/j.jim.20190803.11

Copy | Download

@article{10.11648/j.jim.20190803.11,
  author = {Shamsul Rijal Muhammad Sabri and Wajeeh Mustafa Sarsour},
  title = {Modelling on Stock Investment Valuation for Long-term Strategy},
  journal = {Journal of Investment and Management},
  volume = {8},
  number = {3},
  pages = {60-66},
  doi = {10.11648/j.jim.20190803.11},
  url = {https://doi.org/10.11648/j.jim.20190803.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190803.11},
  abstract = {This paper developed long-term investment of stock cash flow activities comprising of how yearly investment contribution turns to share units and vice versa, how the series of dividends pay out are declared and finally, how the growth of share units are generated over the years of investing period. These investment model activities form cash inflows and outflows and hence, in return, the performance of this investment model can be evaluated. In addition, this model also constrained that, the yearly dividends obtained were being reinvested together with the annual contributions in accumulating shares. Besides presenting the computation of purchasing and selling of share units and the amount of dividend obtained, this paper contributed in the computation of the growth of the shares in a year, based on share issuance such as share split or consolidation, as well as bonus share rewards. Based on these activities, the net present value (NPV) was derived and the modified internal rate of return (MIRR) was determined by setting up zero-valued of NPV. We illustrated the computation of MIRR by looking at the investment activity towards Prolexus Berhad from the year 2011 to 2015. The increasing of company share prices through years, the encouraging series of dividend rates and generous of the company in issuing shares to the shareholders, were also clearly figured that determined attractive MIRR.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Modelling on Stock Investment Valuation for Long-term Strategy
AU  - Shamsul Rijal Muhammad Sabri
AU  - Wajeeh Mustafa Sarsour
Y1  - 2019/08/23
PY  - 2019
N1  - https://doi.org/10.11648/j.jim.20190803.11
DO  - 10.11648/j.jim.20190803.11
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 60
EP  - 66
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20190803.11
AB  - This paper developed long-term investment of stock cash flow activities comprising of how yearly investment contribution turns to share units and vice versa, how the series of dividends pay out are declared and finally, how the growth of share units are generated over the years of investing period. These investment model activities form cash inflows and outflows and hence, in return, the performance of this investment model can be evaluated. In addition, this model also constrained that, the yearly dividends obtained were being reinvested together with the annual contributions in accumulating shares. Besides presenting the computation of purchasing and selling of share units and the amount of dividend obtained, this paper contributed in the computation of the growth of the shares in a year, based on share issuance such as share split or consolidation, as well as bonus share rewards. Based on these activities, the net present value (NPV) was derived and the modified internal rate of return (MIRR) was determined by setting up zero-valued of NPV. We illustrated the computation of MIRR by looking at the investment activity towards Prolexus Berhad from the year 2011 to 2015. The increasing of company share prices through years, the encouraging series of dividend rates and generous of the company in issuing shares to the shareholders, were also clearly figured that determined attractive MIRR.
VL  - 8
IS  - 3
ER  -

Copy | Download