D9 fx =$C$22*C9 A D E F G H Growth Value Calculated from CAPM K L M P Q R S T U V W X Y Z AA AB AC AD AE AF AG 1 2 Input Input Input 3 Company 4 5 Ford Dell 6 Toyota 7 Apple 1.32 8 Hewlett Packard 9 Textron 10 Infosys 11 Amgen 12 Microsoft 13 IBM BETA B(Rm-Rf) 1.99 16.14% 1.53 12.36% 0.53 4.25% 4.40% 10.69% 4.40% 2.03 16.45% 4.40% 1.51 12.27% 4.40% 1.91 15.43% 1.77 14.33% 1.01 8.18% 1.59 12.84% Rf ICC 4.40% 4.40% 4.40% 4.40% 4.40% 4.40% 14 Raytheon 15 Pfizer 0.54 4.41% 4.40% 7.94% 4.40% 16 Boeing 17 EDS 18 General Motors 0.98 0.59 4.81% 4.40% 0.97 7.86% 4.40% 1.18 9.54% 4.40% CASH MARKET FLOW CAP 20.5% $ 0.4 S 17.8 16.8% $ 4.8 $166.2 $ 8.7% $ 3.2 $ 189.9 $ 15.1% $ 4.8 $161.0 $ 20.9% $ 9.3 $ 131.2 $ 16.7% $ 1.0 $ 16.7 $ 19.8% $ 1.9 $ 18.7% $ 5.1 $ 12.6 % $ 17.8 $ 17.2 % $ 15.0 $ 8.8% $ 1.8 $ 12.3% $ 17.4 S 9.2% $ 7.4 $ 12.3% $ 2.0 $ 13.9 % $ (5.5) $ VALUE GROWTH TO OPERATIONS OPERATIONS GROWTH MULTIPLE VALUE S 1.85 S 16 8.62 28.90 S 137 4.75 37.07 S 153 32.10 $ 44.60 $ 4.12 129 4.02 87 1.94 6.00 $ 11 1.78 24.2 $ 9.66 $ 15 1.51 63.2 $ 27.30 36 1.32 291.0 $ 141.50 150 1.06 156.0 $ 28.1 $ 164.2 $ 73.4 S 12.5 $ 21.0 $ 87.11 69 0.79 20.90 141.00 $ 7 0.34 23 0.16 79.80 S (6) (0.08) 16.31 $ (4) (0.23) (39.45) $ 60 (1.53) 19 20 Input RISK FREE 4.40% 21 Input MARKET RETURN 12.50% 22 Rm - Rf 8.10% 23 24 25 26 Implied Cost of Capital = Rf + BETA (Rm - Rf) Operations Value = Cash Flow / ICC Growth Value = Market Capitalization - Operations Value 27 28 Source: Profiting from Perhaps: Unleashing Opportunities for Growth 29 30 31 Alexander B. van Putten, Adjunct Professor, The Wharton School SEC.gov | Company Search Page 32 33 34 35 36 37 Rate Ranked Sheet3 (+) ་
D9 fx =$C$22*C9 A D E F G H Growth Value Calculated from CAPM K L M P Q R S T U V W X Y Z AA AB AC AD AE AF AG 1 2 Input Input Input 3 Company 4 5 Ford Dell 6 Toyota 7 Apple 1.32 8 Hewlett Packard 9 Textron 10 Infosys 11 Amgen 12 Microsoft 13 IBM BETA B(Rm-Rf) 1.99 16.14% 1.53 12.36% 0.53 4.25% 4.40% 10.69% 4.40% 2.03 16.45% 4.40% 1.51 12.27% 4.40% 1.91 15.43% 1.77 14.33% 1.01 8.18% 1.59 12.84% Rf ICC 4.40% 4.40% 4.40% 4.40% 4.40% 4.40% 14 Raytheon 15 Pfizer 0.54 4.41% 4.40% 7.94% 4.40% 16 Boeing 17 EDS 18 General Motors 0.98 0.59 4.81% 4.40% 0.97 7.86% 4.40% 1.18 9.54% 4.40% CASH MARKET FLOW CAP 20.5% $ 0.4 S 17.8 16.8% $ 4.8 $166.2 $ 8.7% $ 3.2 $ 189.9 $ 15.1% $ 4.8 $161.0 $ 20.9% $ 9.3 $ 131.2 $ 16.7% $ 1.0 $ 16.7 $ 19.8% $ 1.9 $ 18.7% $ 5.1 $ 12.6 % $ 17.8 $ 17.2 % $ 15.0 $ 8.8% $ 1.8 $ 12.3% $ 17.4 S 9.2% $ 7.4 $ 12.3% $ 2.0 $ 13.9 % $ (5.5) $ VALUE GROWTH TO OPERATIONS OPERATIONS GROWTH MULTIPLE VALUE S 1.85 S 16 8.62 28.90 S 137 4.75 37.07 S 153 32.10 $ 44.60 $ 4.12 129 4.02 87 1.94 6.00 $ 11 1.78 24.2 $ 9.66 $ 15 1.51 63.2 $ 27.30 36 1.32 291.0 $ 141.50 150 1.06 156.0 $ 28.1 $ 164.2 $ 73.4 S 12.5 $ 21.0 $ 87.11 69 0.79 20.90 141.00 $ 7 0.34 23 0.16 79.80 S (6) (0.08) 16.31 $ (4) (0.23) (39.45) $ 60 (1.53) 19 20 Input RISK FREE 4.40% 21 Input MARKET RETURN 12.50% 22 Rm - Rf 8.10% 23 24 25 26 Implied Cost of Capital = Rf + BETA (Rm - Rf) Operations Value = Cash Flow / ICC Growth Value = Market Capitalization - Operations Value 27 28 Source: Profiting from Perhaps: Unleashing Opportunities for Growth 29 30 31 Alexander B. van Putten, Adjunct Professor, The Wharton School SEC.gov | Company Search Page 32 33 34 35 36 37 Rate Ranked Sheet3 (+) ་
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:D9
fx
=$C$22*C9
A
D
E
F G
H
Growth Value Calculated from CAPM
K
L
M
P
Q
R
S
T
U
V
W
X
Y
Z
AA
AB
AC
AD
AE
AF
AG
1
2
Input
Input
Input
3
Company
4
5
Ford
Dell
6
Toyota
7
Apple
1.32
8
Hewlett Packard
9
Textron
10
Infosys
11
Amgen
12
Microsoft
13
IBM
BETA B(Rm-Rf)
1.99 16.14%
1.53 12.36%
0.53 4.25% 4.40%
10.69% 4.40%
2.03 16.45%
4.40%
1.51 12.27% 4.40%
1.91 15.43%
1.77 14.33%
1.01 8.18%
1.59 12.84%
Rf
ICC
4.40%
4.40%
4.40%
4.40%
4.40%
4.40%
14
Raytheon
15
Pfizer
0.54 4.41% 4.40%
7.94% 4.40%
16
Boeing
17
EDS
18
General Motors
0.98
0.59 4.81% 4.40%
0.97 7.86% 4.40%
1.18 9.54% 4.40%
CASH MARKET
FLOW
CAP
20.5% $ 0.4 S 17.8
16.8% $ 4.8 $166.2 $
8.7% $ 3.2 $ 189.9 $
15.1% $ 4.8 $161.0 $
20.9% $ 9.3 $ 131.2 $
16.7% $
1.0 $ 16.7 $
19.8% $ 1.9 $
18.7% $ 5.1 $
12.6 % $ 17.8 $
17.2 % $ 15.0 $
8.8% $ 1.8 $
12.3% $ 17.4 S
9.2% $ 7.4 $
12.3% $ 2.0 $
13.9 % $ (5.5) $
VALUE
GROWTH TO
OPERATIONS
OPERATIONS GROWTH MULTIPLE
VALUE
S
1.85 S 16
8.62
28.90 S 137
4.75
37.07 S 153
32.10 $
44.60 $
4.12
129
4.02
87
1.94
6.00 $
11
1.78
24.2 $
9.66 $
15
1.51
63.2 $
27.30
36
1.32
291.0 $
141.50
150
1.06
156.0 $
28.1 $
164.2 $
73.4 S
12.5 $
21.0 $
87.11
69
0.79
20.90
141.00 $
7
0.34
23
0.16
79.80 S (6)
(0.08)
16.31 $ (4)
(0.23)
(39.45) $ 60
(1.53)
19
20 Input
RISK FREE
4.40%
21 Input
MARKET RETURN
12.50%
22
Rm - Rf
8.10%
23
24
25
26
Implied Cost of Capital = Rf + BETA (Rm - Rf)
Operations Value = Cash Flow / ICC
Growth Value = Market Capitalization - Operations Value
27
28
Source: Profiting from Perhaps: Unleashing Opportunities for Growth
29
30
31
Alexander B. van Putten, Adjunct Professor, The Wharton School
SEC.gov | Company Search Page
32
33
34
35
36
37
Rate Ranked
Sheet3
(+)
་
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