Resending the questions along with the data set.

(d) Compute net operating profit after tax (NOPAT) for 2016, assuming a federal and state statutory tax rate of 37%. (Round your answer to the nearest whole number.) (9 points)

(e) Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal period. Note, the forecasted sales growth rates are available in the case (12 points)

(f) Estimate the value of a share of Cisco common stock as of July 30, 2016 using the discounted cash flow (DCF) model and sales, NOPAT and NOA forecast in (e); Describe the DCF model, and explain the computations and results. (15 points)

(g) Cisco stock closed at $31.47 on September 8, 2016, the date the Form 10-K was filed with the SEC. How does your DCF valuation estimates compare with this closing price? What do you believe are some reasons for the difference? What investment decision is suggested from your results? (8 points)

(h) Assume that Ciscos weighted average cost of capital (WACC) increased to 15% due to the high inflation. Estimate the value of a share of Cisco common stock as of July 30, 2016, using the discounted cash flow (DCF) model and the forecast in (e); Describe the computations, and discuss how the increase in WACC affects Ciscos stock price. (10 points)

(i) Discuss how inflation, federal monetary policy, credit ratings, and sales growth opportunities affect Ciscos equity valuation based on the DCF and CAPM models. (8 points)

(j) Are there other equity valuation models? Please discuss the advantages and disadvantages of different equity valuation models. (12 points)

DuPont Analysis, Forecasting with the Parsimonious Method and Estimating Share Value of Cisco Systems Inc Using the DCF Model Cisco Systems, Inc. is a multinational information technology company headquartered in San Jose, California, that produces and sells networking hardware, telecommunications equipment and other high-technology services. Cisco Systems was founded in December 1984 by Leonard Bosack and Sandy Lerner, two Stanford University computer scientists, who pioneered the concept of a local area network (LAN). In 1990, Cisco Systems went public with a market capitalization of $224 million. By 2000, Cisco had become the most valuable company in the world with a more than $500 billion market capitalization. The stock was initially listed on the NASDAQ in 1990, and then was added to the Dow Jones Industrial Average on June 8, 2009. Cisco is currently included in the S&P 500 Index, the Russell 1000 Index, NASDAQ-100 Index and the Russell 1000 Growth Stock Index. 1 As Figure 1 shows, the stock price of Cisco Systems peaked in 1999-2000 before the burst of internet bubble. However, its stock price has been fluctuating in the range of $10-$30 since 2001.

see attached table, table 1

see attached, Following are the income statement and balance sheet for Cisco Systems for the year ended July 30, 2016.

see attached, 2 consolidated balance sheets.

Figure 1. Stech Price of Cisco Systems inc. 30,2010 . Liabilities Current liabilities Short-term debe Accounts payable Income taxes payable Acerued ecmpensation Deferred reverue Ober curnent liabilities Total current liabilities Long-berm debt Income taxes payable Deferred revenue Otber longetern liabilities Total tiabilities $4,1601,0565172,95110,1556,07224,91124,4539256,3171.43158,067$3,8971,104623,0499,8245,47623,41221,4571,8765,3591,56753,666 Figure 1. Stech Price of Cisco Systems inc. 30,2010 . Liabilities Current liabilities Short-term debe Accounts payable Income taxes payable Acerued ecmpensation Deferred reverue Ober curnent liabilities Total current liabilities Long-berm debt Income taxes payable Deferred revenue Otber longetern liabilities Total tiabilities $4,1601,0565172,95110,1556,07224,91124,4539256,3171.43158,067$3,8971,104623,0499,8245,47623,41221,4571,8765,3591,56753,666