Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding. Shareholders' EquityShareholders' EquityYearBeginningNet IncomeDividendsEnding20213,610.82,231.220222,644.73,671.820233,671.82,991.12,954.13,708.720243,708.73,341.03,299.83,749.920253,749.93,731.93,685.83,796.020263,796.03,918.53,870.13,844.420273,844.44,114.44,063.63,895.220283,895.24,320.24,266.83,948.620293,948.64,536.24,480.14,004.620304,004.64,763.04,704.24,063.4Terminal4,063.44,905.94,784.04,185.3 YearNet IncomeActual 20202,030.420212,259.120222,677.820232,991.120243,341.020253,731.920263,918.520274,114.420284,320.220294,536.220304,763.0Terminal4,905.9

CAPM Model The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the…

Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding.

Use the following forecasted financials: (Certain cells were left intentionally blank by asker) You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%. d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%. e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Use the following forecasted financials: (Certain cells were left intentionally blank by asker)

You may need to use the CAPM model. Assume beta equals 1.09, the risk-free rate is 1.62%, and the market risk premium is 4.72%.

d) Calculate the terminal value and the present value of the terminal value. Assume a long-term growth rate of 3%.

e) Calculate Sherwin Williams value per share. The company has 263.3 million shares outstanding.

Shareholders' Equity
Shareholders' Equity
Year
Beginning
Net Income
Dividends
Ending
2021
3,610.8
2,231.2
2022
2,644.7
3,671.8
2023
3,671.8
2,991.1
2,954.1
3,708.7
2024
3,708.7
3,341.0
3,299.8
3,749.9
2025
3,749.9
3,731.9
3,685.8
3,796.0
2026
3,796.0
3,918.5
3,870.1
3,844.4
2027
3,844.4
4,114.4
4,063.6
3,895.2
2028
3,895.2
4,320.2
4,266.8
3,948.6
2029
3,948.6
4,536.2
4,480.1
4,004.6
2030
4,004.6
4,763.0
4,704.2
4,063.4
Terminal
4,063.4
4,905.9
4,784.0
4,185.3

Year
Net Income
Actual 2020
2,030.4
2021
2,259.1
2022
2,677.8
2023
2,991.1
2024
3,341.0
2025
3,731.9
2026
3,918.5
2027
4,114.4
2028
4,320.2
2029
4,536.2
2030
4,763.0
Terminal
4,905.9

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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