02 May CALCULATE THE INTRINSIC VALUE OF THE STOCK USING 12% REQUIRED RATE OF RETURN.
Form a group of 5 students. You will be given a US-listed company. You need to search for the company financial data from MSN Money at http://money.msn.com. In the quote search box, type a company name (eg: Apply, MCD…). Go to “Financial”, you will see the most recent four-year financial statements. Input 2011-2014 income statements and balance sheets into an excel sheet.
2. Calculate average annual growth rates for revenue and net income using both GEOMEAN and AVERAGE functions. Create a column chart and scatter chart of total revenue and net income. (refer to Exhibit 1-8 & Figure 1-12 in text book)
3. Prepare ratio table for all ratio on Table 4-1 (page 135), Economic profit worksheet as Exhibit 4-8 (page 134), and Z-score table as in Problem 1 of Chapter 4.
4. Prepare Pro-forma income statement and balance sheet of 2015. Use TREND function to predict 2015 sales. Each item that changes with sales will be the five-year average percentage of sales. Tax rate will be 35%. Assume the DFN will be absorbed by long-term debt and interest rate is 5% of LTD. Use TREND functions for all other accounts. Set up an interactive worksheet to eliminate DFN.
5. Prepare a cash-flow statement based on Pro-forma 2015 income statement and balance sheet.
6. Prepare common-size income statements and balance sheets for 2011-2015.
7. Replicate the analysis from Problem 2 of Chapter 6 (page 186).
8. Calculate the compound annual growth rate of the past 4-year dividends using GEOMEAN function. Calculate the intrinsic value of the stock using 12% required rate of return. Calculate intrinsic value per share by dividing the company value with the total outstanding shares. Compare against stock price. Is it a Buy or Sell?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.