year 1 23 2 3 45 5 6 7 8 9 10 year 1=1990 sales 70 183 340 649 1243 1979 4096 6440 8459 12154 estimated revenue 1.Find the function for the estimate of Cisco's revenue in year x. 2. Find the estimate of Cisco's growth rate (%) per year

year 1 23 2 3 45 5 6 7 8 9 10 year 1=1990 sales 70 183 340 649 1243 1979 4096 6440 8459 12154 estimated revenue 1.Find the function for the estimate of Cisco's revenue in year x. 2. Find the estimate of Cisco's growth rate (%) per year

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

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Given data: Sales $2,000.000 OpCap $1,120,000 Wacc 9% OP = Nopat/sales 4.5% CR = OpCap/sales 56% Year Rate growth (%) Sales Nopat OpCap Free Cash Flow (FCF) Free Cash Flow - Growth ROIC 0 - $2,000.000 $90.000 $1,120.000 - - - 1 0.10 $2,200.00 $99.000 $1,232.00 $(13.000) - 8.04% 2 0.08 $2,376.00 $106.92 $1,330.56 $8.360 -164.31% 8.04% 3 0.05 $2,494.80 $112.266 $1,397.088 $45.738 447.11% 8.04% 4 0.05 $2,619.54 $117.87 $1,466.94 $48.025 5.00% 8.04% What is the value of operations at Year 0? How does the Year-0 value of operations compare with the Year-0 total net operating capital?
Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
Use the table for the question(s) below. FCF Forecast ($ million) Year Sales 1 270 12.5% 32.40 Less: Income Tax (37%) (6.48) Less Increase in NWC (12% of Change in Sales) 3,60 Free Cash Flow 22.32 Growth versus Prior Year EBIT (10% of Sales) 0 240 OA. $4.27 OB. $7.47 OC. $12.8 OD. $5.12 2 290 7.4% 34.80 (6.96) 2.40 25.44 ACCE 3 310 6.9% 37.20 (7.44) 2.40 27.36 Banco Industries expect sales to grow at a rapid rate over the next 3 years, but settle to an industry growth rate of 4% in year 4. The spreadsheet above shows a simplified pro forma for Banco Industries. Banco industries has a weighted average cost of capital of 10%, $30 million in cash, $60 million in debt, and 18 million shares outstanding. If Banco Industries can reduce its operating expenses so that EBIT becomes 12% of sales, by how much will its stock price increase? 4 325.5 5.0% 39.06 (7.81) 1.86 29.388
Company has net income of $41,500, total equity of $155,625 and total liabilities of $103,750, What is internal growth rate for this company if the retention ratio is 0.87 Select one: a.16% b.26.67% C.27.12% d15.24% Next page Jump to 3E4S 7 (8 91 E F K
Sales SOLVE IT ON MS EXCEL or GOOGLE SPREADSHEET (please send the file) Ziegen, Inc. Income Statement for 2013 Make a Proforma Income Statement and ProForma Balance Sheet using the Financial Planning attached. Use 15% as the Sales Growth Rate of the 2013 base year, all other data remain the same. Net Income Ziegen, Inc. Balance Sheet for 2013 Current assets Net fixed assets Total Total Accounts payable Accrued expenses Notes payable Current liabilities Long-term debt Total liabilities Common stock (par) Paid-in capital Retained earnings Common equity $10,000,000 $ 500,000 $ 2,000,000 4,000,000 $ 6,000,000 $ 1,000,000 1,000,000 500,000 $ 2,500,000 2,000,000 $ 4,500,000 100,000 200,000 1,200,000 $ 1,500,000 $6,000,000 Calculation $.5m/$10m = Calculation $2m/$10m = $4m/$10m = $1m/$10m = $1m/$10m = Ziegen, Inc. Pro Forma Income % of 2013 Sales Statement for 2014 5.0% % of 2013 Sales 20.0% 40.0% 10.0% 10.0% NAª NA NA" NA" Calculation 20% Sales growth rate = Sales Net Income Ziegen, Inc. Pro…
Which of the following statements is TRUE? When EBIT and total assets both increase by 25%, the basic earnings power will also increase O a. An increase in the quick ratio over time means that the company's liquidity position is improving. O b. approximately by 25%. A lower than the industry's average inventory turnover ratio means that the company turns over or sells O C. and replaces its inventory more times per year. A higher than industry average P/E ratio indicates the company's stock must be overvalued. d.
Firm-specific requirements 3. List the last eleven-year net incomes of your company and the competitor. Calculate their means, annual growth rate, mean annual growth rates, and standard deviations (STD) in Excel. Copy the results below: Your firm's Net Income (NI) ($millions) Competitor's Net Income Fiscal Your firm's NI Competitor's NI Annual Growth rate year ($millions) Annual Growth rate (%) (%) NA $ 5,007 $ 4,002 $ 3,659 $ 3,134 $ 2,679 $ 2,350 $ 2,377 $ 2,058 $ 2,039 $ 1,709 $ 1,462 $ 2,770 $ 94,680 $ 57,411 $ 55,256 $ 59,531 $ 48,351 $ 45,687 $ 53,394 $ 39,037 $ 37,037 $ 41,733 $ 25,922 $ 55,803 1 2021 NA 2 2020 2019 4 2018 5 2017 2016 7 2015 8 2014 9. 2013 10 2012 11 2011 Мean STD
5) Big Corporation had the following sales over the last 4 years; Year Sales (in 000s) 1 225.00 2 236.25 3 243.125 4 248.00 a) What was the growth rate in sales between years 1 & 2; b) What is the growth rate in sales between years 3 & 4; c) What is the average annual growth rate for these years?
Suppose the following model describes changes in Company ABC’s sales: ∆ ABCt = 0.078 - 0.095(∆ ABCt-1) The current change (first difference) in the company’s sales growth rate is 0.04. Use this information to answer the questions below. (NB: For all the questions below, give your final answers to 3 decimal places.) 1. Calculate the mean-reverting level for changes in the company’s sales growth rate. (Give your answer in decimals). 2. What is the best prediction of the next change? (Give your answer in decimals) 3. What is the prediction of the change following the next change? (Give your answer in decimals) 4. blanks. Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the beginning of the first quarter of 2022. ABCs sales in the previous four quarters were as follows: 1Q 2021, R 1,200,000; 2Q 2021, R 800,000; 3Q 2021, R 750,000; and 4Q 2021, R 1,600,000. Calculate the four-quarter moving average of sales as of the beginning of the first…
Suppose a firm has had the following historic sales figures. What would be the forecast for next year's sales using the average approach? You must use the built-in Excel function to answer this question. Input area: Year Sales 2016 2017 2018 es es e $ 1,500,000 $ 1,750,000 $ 1,400,000 2019 $ 2,000,000 2020 $ 1,600,000 Output area: Next year's sales
Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%; payout ratio = 30%; equity/assets = 0.40. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate?
Is the company growing? Explain. Be sure to include the percentages you got Millions of US $ $-94 $-38 $-36 $52 $-28 $-33 $-28 Annual Net Income 2022 2021 2020 2019 2018 2017 2016 To calculate growth versus prior years, use this formula: (this year's number minus last year's number)/Last year's number). This will give you the percentage change from the previous year. • • From 2016 to 2017: ((-$33 million)-(-$28 million))/(-$28 million)) *100= 17.86% • From 2017 to 2018: ((-$28 million)-(-$33 million))/(-$33 million) *100= -15.15% From 2018 to 2019: (($52 million)-(-$28 million))/(-$28 million) *100= -285.71% From 2019 to 2020: ((-$36 million)-($52 million))/ ($52 million) *100= -169.23% ● From 2020 to 2021: ((-$38 million)-(-$36 million))/(-$36 million) *100= 5.56% From 2021 to 2022: ((-$94 million)-(-$38 million)/(-$38 million) *100= 147.36% • ●

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