GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Question
Chapter 26, Problem 5PS
Summary Introduction
To determine:
For evaluation of hedge fund, the most appropriate benchmark among the given ones.
Introduction:
For hedge fund evaluation, evaluation of the indexes is done and it is seen that when there is a fixed income hedge fund then the high return individual index would be the best and when there is an equity hedge fund then the most liquid stocks in indexes are considered as a best individual market index.
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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) $(8,747) million
NNO is negative, which means that Cisco has net nonoperating investments
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($ millions)
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Reported
2019
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2021 Est.
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2023 Est.
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$
1241
1303
1368
10673
11207
11767
1437 $
12354
302 ✓
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9918
9679
9445 ✔
0 ×
Cum. present value of horizon FCFF $
0 ×
Present value of terminal FCFF
0 ☑
Total firm value
0 ☑
NNO
-8747 ✓
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40.05
Don't used hand raiting and don't used Ai solution
Don't used hand raiting and don't used Ai solution
Chapter 26 Solutions
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
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