Question: Please use excel and do this for MSFT (Microsoft) as the company. Thank you! Often, one of the first things that you do when learning

Please use excel and do this for MSFT (Microsoft) as the company. Thank you!

Often, one of the first things that you do when learning how to do research is to replicate an already existing study.

The assignment this week is to replicate a DCF model for a company of your choosing using the video "Equity valuation using a DCF model" as a guide.

Chose a company (listed on a major US exchange) and using the steps outlined in the video, construct a DCF model.

Your submission should include a spreadsheet with the completed DCF model as well as answers to the following questions:

What did you use as the risk-free rate? Why? What did you use as the market return? Why? Do you think that the beta makes sense for the company? Why? What did you use as the rate of debt? Why?

What is the intrinsic value of your company? Should you buy or sell?

***For the following questions, make sure you provide tangible, numeric answers.*** How sensitive is the Intrinsic value to the WACC ? How important is the terminal value to the total intrinsic value?

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 Finance Questions!

Please use MSFT (Microsoft) as the company! Thank you Often, one of the first things that you do when learning how to do research is to replicate an already existing study. The assignment this week...

Please help me with this assignment, 100% human! Reference book George, J. M. (2024). Contemporary management (12th ed.). McGraw-Hill Education. keiser library Syahbinah, S., & Suhardianto, N....

please help me answer these questions especially #9 thank you Abstract This case study of capital investment analysis can be applied to the fundamentals of finance course. Ideally this case will also...

I need help with answering these questions. For part 1 I need 2 examples that are direct quotes from my previous writings. For part 2 I need 4 textual examples and for part 5 I need one. You will...

Please answer this question with extreme detail for an immediate thumbs up. I don't get credit unless it is detailed please help. Thank you for your time in advance. REQUIRED TEXT POSTED WITH...

Please help in answering the listed question at the bottom, especially #1 and #2. Thank you! Abstract This case study of capital investment analysis can be applied to the fundamentals of finance...

Case Study Muesli AG Introduction The management at Muesli AG fully understands the importance of budgeting not only to help reach company goals, but also to keep the companyfocused on its plans for...

To test his hypothesis that students who finish an exam first get better grades, a professor kept track of the order in which papers were handed in. Of the first 25 papers, 10 received a B or better...

Explain the financial impact of premature death on the different types of families in the United States.

1 Work out each addition. Some working has been shown to help you. a 11 5 10 1 -0 22 10 10 10 10 8 3. 1 -+ = C + 4 8 B-AM b 9 d + = = 4 12 + 1 = 12 12 12

Dzen international Incorporated has a list of accounts in alphabetical order at the end of its first year of operations ending December 31, Current yeat. Required: 1. Create an Income Statement. 2....