-The assignment requires a copy of the latest annual report (10-K) of your assigned company. You...

 

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-The assignment requires a copy of the latest annual report (10-K) of your assigned company. You will need to use the financial statements portion to complete the assignment, which can be obtained through several sources. Some major sources include: 1) The company's Investor Relations Department. 2) A business library, such as the Baruch College Library or the Business and Science Library in New York City. 3) The company's web site, where a copy can usually be downloaded directly. 4) A web site that accesses EDGAR, the SEC's corporate filing center. This can be accessed from Yahoo (under the company's profile) or through sites such as Free EDGAR (www.freeedgar.com) and EDGAR Online (www.edgar-online.com). 5) An annual report service, which is provided by major financial information companies such as Dow Jones. a minimum projection of -A pro forma Income Statement must be prepared in MS Excel, using three years, as based on pro forma projections discussed in Chapter 18. You need to include the most recent income statement for your company that is part of the 10-K. This information can then be used to calculate the fair value of the company's stock price, as based on the stock valuation formulas discussed in Chapters 7 and 20. All assumptions and formulas used for the pro forma projections and the company's fair value must be included at the end of your model. Once a fair value is reached, this can be compared to a recent quote of the company's stock price to determine whether or not the company is fairly valued at its most recent trading price. A separate attachment provides an example of how this should be constructed. XYZ Corporation Earnings Model Income & Pro Forma Income Statements 12/31/20 and PF 12/31/21 to 12/31/23 (Values in Millions of Dollars) 2020 2020CS 2021PF 2022PF 2023PF $2,500 ($750) ($250) $3,802 ($1,141) ($380) $2,281 Sales 100.0% $2,875 $3,306 ($863) ($288) $1,725 ($992) ($331) Cost of Goods Sold 30.0% Depreciation 10.0% $1,500 ($150) $1,350 ($473) $878 EBIT 60.0% $1,984 ($173) $1,553 ($543) $1,009 ($198) $1,785 ($625) $1,160 ($228) $2,053 ($719) Interest 6.0% Income Before Taxes 54.0% Taxes, 35% 18.9% Net Income 35.1% $1,335 ($219) $658 ($252) $757 ($290) $870 ($334) $1,001 Dividends 25.0%* Retained Earnings 75.0%* Dividends Per Share (DPS) $2.19 $2.52 $2.90 $3.34 *-Dividends and RE are calculated as a percentage of Net Income. -The assignment requires a copy of the latest annual report (10-K) of your assigned company. You will need to use the financial statements portion to complete the assignment, which can be obtained through several sources. Some major sources include: 1) The company's Investor Relations Department. 2) A business library, such as the Baruch College Library or the Business and Science Library in New York City. 3) The company's web site, where a copy can usually be downloaded directly. 4) A web site that accesses EDGAR, the SEC's corporate filing center. This can be accessed from Yahoo (under the company's profile) or through sites such as Free EDGAR (www.freeedgar.com) and EDGAR Online (www.edgar-online.com). 5) An annual report service, which is provided by major financial information companies such as Dow Jones. a minimum projection of -A pro forma Income Statement must be prepared in MS Excel, using three years, as based on pro forma projections discussed in Chapter 18. You need to include the most recent income statement for your company that is part of the 10-K. This information can then be used to calculate the fair value of the company's stock price, as based on the stock valuation formulas discussed in Chapters 7 and 20. All assumptions and formulas used for the pro forma projections and the company's fair value must be included at the end of your model. Once a fair value is reached, this can be compared to a recent quote of the company's stock price to determine whether or not the company is fairly valued at its most recent trading price. A separate attachment provides an example of how this should be constructed. XYZ Corporation Earnings Model Income & Pro Forma Income Statements 12/31/20 and PF 12/31/21 to 12/31/23 (Values in Millions of Dollars) 2020 2020CS 2021PF 2022PF 2023PF $2,500 ($750) ($250) $3,802 ($1,141) ($380) $2,281 Sales 100.0% $2,875 $3,306 ($863) ($288) $1,725 ($992) ($331) Cost of Goods Sold 30.0% Depreciation 10.0% $1,500 ($150) $1,350 ($473) $878 EBIT 60.0% $1,984 ($173) $1,553 ($543) $1,009 ($198) $1,785 ($625) $1,160 ($228) $2,053 ($719) Interest 6.0% Income Before Taxes 54.0% Taxes, 35% 18.9% Net Income 35.1% $1,335 ($219) $658 ($252) $757 ($290) $870 ($334) $1,001 Dividends 25.0%* Retained Earnings 75.0%* Dividends Per Share (DPS) $2.19 $2.52 $2.90 $3.34 *-Dividends and RE are calculated as a percentage of Net Income.

Answer rating: 100% (QA)

EBAY INC INCOMESTATEMENT Period End Projected Income Statement for 3 years Date Table Of Contents CO... View the full answer