Question: 1) Value Cisco Systems using a free cash flow model 2) Value using a P/E Model justify your P/E Use Estimates from FactSet for 2020-2022

1) Value Cisco Systems using a free cash flow model 2) Value using a P/E Model justify your P/E Use Estimates from FactSet for 2020-2022 FCF and 2022 EPS (you do not need to calculate) Assume long-term growth of 3%, Risk Free rate of 3% and Market Risk Premium of 7% Things you will need - Beta of Cisco Systems - Give detail of where you obtained that number Shares outstanding Dividend Payments Market Value of Debt and Market Value of Stock (Calculation of WACC) Use total debt (can be fou factset under DCS overview); Assume After Tax cost of borrowing as 2% - refer to spreadsheets th have computation of WACC and class notes. Total cash and cash investments Note: Cisco Systems is not a growth stock! Should you invest in the shares? Why might your valuation methods yield different results? 1) Value Cisco Systems using a free cash flow model 2) Value using a P/E Model justify your P/E Use Estimates from FactSet for 2020-2022 FCF and 2022 EPS (you do not need to calculate) Assume long-term growth of 3%, Risk Free rate of 3% and Market Risk Premium of 7% Things you will need - Beta of Cisco Systems - Give detail of where you obtained that number Shares outstanding Dividend Payments Market Value of Debt and Market Value of Stock (Calculation of WACC) Use total debt (can be fou factset under DCS overview); Assume After Tax cost of borrowing as 2% - refer to spreadsheets th have computation of WACC and class notes. Total cash and cash investments Note: Cisco Systems is not a growth stock! Should you invest in the shares? Why might your valuation methods yield different results

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