Homework $3$

The data and templates for this homework are provided in Canvas in the file called Templates

HW$3.$xlsx$.$ Please follow the instructions below:

$$ CISCO VALUATION $-$ You are provided with the last three years of balance sheets and

consolidated statements of cash flows for CISCO $($data provided on the CISCO SCF and

CISCO BAL SHEET tabs$).$ Your task is three$-$fold:

o Use the consolidated Statement of Cash Flows to determine the FCF for Cisco

$($template provided under CISCO TEMPLATES$)$

o Use the FCF determined above along with the additional assumptions provided in the

template to provide a valuation of CISCO$$s price per share.

$$ Assume mid$-$year discounting

$$ Make sure you add back both cash and short$-$term investments to your

enterprise value

$$ Make sure you subtract ALL long term debt from your enterprise value $($this

should include the current portion of long term debt$)$

o While you are at it$,$ figure out the sensitivity of the share value to the LT growth and

discount rate assumptions $($for your data table header, please use an IF function so

that negative values show as nmf $$ see solutions for the example in class$).$

$$ ABC FINANCIAL MODEL $$ the directions for this problem are included at the top of the

ABC FINANCIAL MODEL worksheet

When you are done, save the excel spreadsheet with the homework number and your group number

$($please see the group list posted online$)$ for example, HW$3-$Group$1$

$$ Include a first worksheet that contains your Group number and the names of the members of

your group $($last name, first name$).$

$$ Upload the complete file on Canvas under HW$3($by midnight of the due date$).$