Use the template for the ABC Corp. valuation in section 2.7 to value Cisco stock. Assume that the weighted average cost of capital for Cisco is 12.6%, the growth rate for years 15 is 4%, and that the long-term growth rate is 0%.

CISCO VALUATION
Free cash flow (FCF) year ending 28jul2012		#NAME?	(From Exercise 3)
Growth rate of FCF, years 1-5
Long-term FCF growth rate
Weighted average cost of capital, WACC
Year	2012	2013	2014	2015	2016	2017
FCF							#NAME?
Terminal value							#NAME?
Total							#NAME?
Enterprise value	0	#NAME?
Add back initial cash and marketable securities		#NAME?
2012 liabilities		#NAME?
Equity value		#NAME?
Shares outstanding		#NAME?
Per share		#NAME?
Data table: Share value vs LT growth and WACC
#NAME?		Long-term growth
		-4%	-2%	0%	4%	6%
	10%
WACC	12%
	14%
	16%
	18%
	20%
	22%