(d) Estimate the value of a share of Cisco common stock using the discounted cash flow (DCF) model as of July 27, 2019 using the following assumptionsAssumptionsDiscount rate (WACC)Common shares outstanding7.60%5,029.00 millionNet nonoperating obligations (NNO) $(8,747) millionNNO is negative, which means that Cisco has net nonoperating investmentsCSCO($ millions)DCF ModelReported2019Forecast Horizon2020 Est.2021 Est.2022 Est.2023 Est.TerminalPeriodIncrease in NOAFCFF (NOPAT - Increase in NOA)$1241130313681067311207117671437 $12354302 ✓Present value of horizon FCFF991896799445 ✔0 ×Cum. present value of horizon FCFF $0 ×Present value of terminal FCFF0 ☑Total firm value0 ☑NNO-8747 ✓Firm equity value$0 ☑Shares outstanding (millions)5029Stock price per share$40.05

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Answered: (d) Estimate the value of a share of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 67BE

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O Below is the stock price and dividend history for No-Cameras-Allowed Inc. (NCA), a company organizing Las Vegas retreats for investment banks. Stock Price (end-of-year) Dividend (paid during the year) Year 2019 90 180 18 2020 2021 120 6. a. Compute the annual return in 2020 and 2021. b. Compute the arithmetic average return over the 2019–2021 period. c. Compute the geometric average return over the 2019–2021 period. d. You buy 2,000 shares of NCA at the end of 2019 and hold them through the end of 2021. You reinvest any dividends received (i.e., you use the dividend proceeds to buy more shares of NCA). Except for reinvestment of dividends, you neither buy nor sell any shares before the end of 2021. Which average, arithmetic or geometric, better captures your investment performance over the 2019–2021 period? Please provide a brief explanation for your answer. B Focus MacBook Pro
Additional information: 1. The market price of Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash. Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.) Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.) Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.) Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place,…
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 $ 793 2,428 2019 $1,021 1,935 $2,956 2018 $ 883 1,734 $2,617 Current assets Other assets Total assets $3,221 Current liabilities Long-term liabilities Stockholders' equity $ 592 1,607 1,022 $3,221 $ 845 1,070 1,041 $2,956 $ 742 942 933 Total liabilities and stockholders' equity $2,617 WIPER INC. Selected Income Statement and Other Data For the year Ended December 31, 2020 and 2819 (in millions) 2020 2019 Income statement data: Sales $3,965 311 99 236 $2,928 325 Operating income Interest expense Net income Other data: Average number of common shares outstanding Total dividends paid 231 48.2 S 53.8 Required: a. Calculate return on investment, based on net income and average total assets, for 2020 and 2019. b. Calculate return on ecuity for 2020 and 2019. c. Calculate working capital and the current ratio for…
The following table shows the expected dividend payments and required rate of return of Globex Corp. Clearly explain the assumptions, if any, you are using to solve below question(s). 2021 2023 20244 2022 $4 Yeara 2025 20264 20274 ket Dividend $ 0.40 0.44 0.48 $ 0.53 $ 0.59 $ 0.61 $ 0.63 12%e i. Calculate value of Globex Corp share in 2021. ww mm
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I bought AEO stock on 8/14/2018 for $28.02 and then collected $0.1375 dividend on 10/11/2018 and then sold my stock on 11/30/2018 for $20.93. What has been my annualized return from this transaction? ( Please use IRR) A)-54.24% B)-61.96% C)-84.75% D)-78.45% Please answer fast I give you upvote.
I bought ANF stock on 8/14/2018 for $29.26 and then collected $0.20 dividends on 09/06/2018 and then sold my stock on 11/30/2018 for $20.91. What has been my annualized return from this transaction? (Please use IRR) -67.07% -45.20% +3.25% -78.45%
The following table shows the expected dividend payments and required rate of return of Globex Corp. Clearly explain the assumptions, if any, you are using to solve below question(s). Year 2021 2022 2023 2024 2025 2026 2027 ke Dividend $ 0.40 $ 0.44 $ 0.48 $ 0.53 $ 0.59 $ 0.61 $0.63 12% 1,Calculate value of Globex Corp share in 2021. 2.The market price of Globex Corp share is $8.50. Based on your answer in (i), is Globex Corp share overvalued, undervalued or fairly priced? Explain clearly.
The following information is related to X corporation: X's Beta was 1.3, market index 1 January 2020 was 100, market index 31 December 2020 was 110 and interest on treasury bills was 0.03 (risk free). Stock returns using the capital assets pricing model Question 20Answer a. 0.132 b. 0.143 c. 0.112 d. 0.121

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