Question: ( e ) Forecast Cisco's sales , NOPAT , and NOA for years 2017 through 2020 and the terminal period using the following assumptions Sales

( e ) Forecast Cisco's sales , NOPAT , and NOA

( e ) Forecast Cisco's sales , NOPAT , and NOA for years 2017 through 2020 and the terminal period using the following assumptions Sales growth 2017 190 Sales growth 2018 - 2020 20 Terminal growth Net operating profit margin 2016 rate rounded to three decimal places Net operating asset turnover 2016 rate rounded to three decimal places Assume a discount rate WACO of 1096 , common shares outstanding of 5 029 million and net nonoperating obligations ( NO ) of $ 37 113 ) million ( NO is negative which means that Cisco has net nonoperating investments ) ( f ) Estimate the value of a share of Cisco common stock using the discounted cash flow ( DCF ) model as of July 30 2016

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Aggie Oil Corporation, a new successful efforts company, incurred the following costs and made the other transactions shown below for the years 2018 and 2019. 2018 a. Paid $225,000 for G&G costs...

Q:

Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period using the following assumptions: Assume a discount rate (WACC) of 10%, common shares outstanding of 5,029...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

I've been told that 2016 NOA = $26,472 and 2016 NOPAT = $10,575, but I'm not sure if that is correct. Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

Forecasting with the Parsimonious Method and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco...

Q:

2. Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period using the following assumptions Note, the forecasted sales growth rates are available in this case....

Q:

Following are the income statement and balance sheet for Cisco Sytems for the year ended July 30, 2016. Cisco Sytems Consolidated Statements of Income Years Ended December ($ millions) July 30, 2016...

Q:

The Carlson Company uses a job- costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Carlson uses normal costing with two direct- cost...

Q:

Stephanie Barnes and Layla Taylor formed a partnership, Design Pros Imaging, last May. Each person contributed assets to the business and both partners work full-time in the business. The business...

Q:

Q 3 . In financial accounting systems, we expect certain types of accounts to have a normal debit or credit balance. This is their "natural balance." Question: Select all the accounts that have a...

Q:

Fitch Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Debits 1. Cost of real estate...

Q:

Leader Enterprises Ltd. follows IFRS and has provided the following information: 1. In 2016, Leader was sued in a patent infringement suit, and in 2017, Leader lost the court case. Leader must now...

Q:

Merrick Inc. follows IFRS and is adjusting and correcting its books at the end of 2017. In reviewing its records, the following information has been compiled: 1. In 2017, the depreciation method on...

Q:

You have been assigned to examine the financial statements of Picard Corporation for the year ended December 31, 2017, as prepared following IFRS. Picard uses a periodic inventory system. You...

Q:

Nadeau Company, a small company following ASPE, is adjusting and correcting its books at the end of 2017. In reviewing its records, it compiles the following information. 1. Nadeau has failed to...

Q:

11.15 Management has stated that it will tolerate one stockout per year. The forecast of annual demand for a particular SKU is 100,000 units, and it is ordered in quantities of 10,000 units. The lead...

Q:

2. Find five metaphors for communication.

Q:

5. Starting with a motive you may have for acting the way you do in a particular situation: a) What purpose did you seek to achieve? b) Which aspects of your past and your surroundings influenced...

Q:

3. (Constructing a metaphor about something can be done by comparing it to something else by using the word is. For instance, Communication is a bridge between people.