1. Consider the company Apple (AAPL) 2. Calculate the cash flow from assets. Find the financial statements...
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Question:
1. Consider the company Apple (AAPL)
2. Calculate the cash flow from assets. Find the financial statements online.
3. Calculate the WACC. Make your best assumptions about the tax rate, the yield of 10-year corporate bond, beta, etc.
4. Make a DCF and assume that the cash flow from assets grows at a constant 5% rate every year. Discount up to 20 years of cash flows.
5. Compare this number to its market capitalization.
6. Is it undervalued or overvalued?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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