GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Chapter 17, Problem 19PS

a.

Summary Introduction

Case summary:

IAAI (Institutional Advisors for All Inc.) is a consulting firm which provides services to all type of institutions and big investors regarding forecasting and determining long-term trends through using normal analysis tools and models which determine how these trends should affect the performance of the various investments. They have concluded that job creation and consumer confidence to inflation and interest rates and then incorporate the forecast movement in inflation rates into an established model for explaining asset prices. They are primary concern about how the job creation and consumer confidence affect bond prices and how those should affect stock prices.

As per historical data, there is a positive trend in stock prices and this is factored into the forecast of the overall economy that they deliver. They have considered fact that an upward trending stock market a positive economic indicator in itself; however they do not agree it is a reason.

The character in this case:

IAAI

Adequate information:

IAAI is a service provider about forecasting the trends

Introduction:

Leading indicators are the indicators which are useful in making predictions about the economy in regard to cycle of industry.

b.

Summary Introduction

Case summary:

IAAI (Institutional Advisors for All Inc.) is a consulting firm which provides services to all type of institutions and big investors regarding forecasting and determining long-term trends through using normal analysis tools and models which determine how these trends should affect the performance of the various investments. They have concluded that job creation and consumer confidence to inflation and interest rates and then incorporate the forecast movement in inflation rates into an established model for explaining asset prices. They are primary concern about how the job creation and consumer confidence affect bond prices and how those should affect stock prices.

As per historical data, there is a positive trend in stock prices and this is factored into the forecast of the overall economy that they deliver. They have considered fact that an upward trending stock market a positive economic indicator in itself; however they do not agree it is a reason.

The character in this case:

IAAI

Adequate information:

IAAI is a service provider about forecasting the trends

Introduction:

Leading indicators are the indicators which are useful in making predictions about the economy in regard to cycle of industry.

Summary Introduction

(c)

Case summary:

IAAI (Institutional Advisors for All Inc.) is a consulting firm which provides services to all type of institutions and big investors regarding forecasting and determining long-term trends through using normal analysis tools and models which determine how these trends should affect the performance of the various investments. They have concluded that job creation and consumer confidence to inflation and interest rates and then incorporate the forecast movement in inflation rates into an established model for explaining asset prices. They are primary concern about how the job creation and consumer confidence affect bond prices and how those should affect stock prices.

As per historical data, there is a positive trend in stock prices and this is factored into the forecast of the overall economy that they deliver. They have considered fact that an upward trending stock market a positive economic indicator in itself; however they do not agree it is a reason.

The character in this case:

IAAI

Adequate information:

IAAI is a service provider about forecasting the trends

Introduction:

Leading indicators are the indicators which are useful in making predictions about the economy in regard to cycle of industry.

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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
Don't used hand raiting and don't used Ai solution
Don't used hand raiting and don't used Ai solution
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