FOUND.OF FINANCIAL MANAGEMENT-ACCESS
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
Question
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Chapter 15, Problem 21P

a.

Summary Introduction

To calculate: The total profit or loss on the shares of Mr. Michael for a week, month and year after the purchase against the original price of purchase in each case.

Introduction:

Profit or Loss:

It refers to the gain or loss arising from commercial transactions during a specific period of time and is used to assess the financial performance of a company.

b.

Summary Introduction

To calculate: The percentage gain or loss from the initial price of $30.

Introduction:

Profit or Loss percentage:

It refers to a percentage that indicates the gain or loss arising from commercial transactions during a specific time period and is used to assess the financial performance of a company.

c.

Summary Introduction

To explain: The reason for the new public issue to have a strong market.

Introduction:

Share Price:

The highest price of one share of a company that an investor is willing to pay is termed as the share price. It is the current price used for the trading of such shares.

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Don't used hand raiting and don't used Ai solution
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(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 assumptions Assumptions Discount rate (WACC) Common shares outstanding 7.60% 5,029.00 million Net nonoperating obligations (NNO) $(8,747) million NNO is negative, which means that Cisco has net nonoperating investments CSCO ($ millions) DCF Model Reported 2019 Forecast Horizon 2020 Est. 2021 Est. 2022 Est. 2023 Est. Terminal Period Increase in NOA FCFF (NOPAT - Increase in NOA) $ 1241 1303 1368 10673 11207 11767 1437 $ 12354 302 ✓ Present value of horizon FCFF 9918 9679 9445 ✔ 0 × Cum. present value of horizon FCFF $ 0 × Present value of terminal FCFF 0 ☑ Total firm value 0 ☑ NNO -8747 ✓ Firm equity value $ 0 ☑ Shares outstanding (millions) 5029 Stock price per share $ 40.05
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