Question: I am stuck on this problem. Please help me and show me calculations. It will help be better prepare for my upcoming exam. Forecast Cisco's
I am stuck on this problem. Please help me and show me calculations. It will help be better prepare for my upcoming exam.
Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period using the following assumptions:
Sales growth 2017 8%
Sales growth 2018 8%
Sales growth 2019 5%
Sales growth 2020 3%
Terminal growth 2%
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 (WACC) of 10%, common shares outstanding of 5,029 million, and net nonoperating obligations (NNO) of $(37,113) million (NNO is negative which means that Cisco has net nonoperating investments).
Attachements included.



Following are the income statement and balance sheet for Cisco Systems for the year ended July 30,2016 . Cisco Systems Inc. Consolidated Balance Sheets
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