Question: Using Microsoft and Dell(Currently), please answer the following questions: 1. Model Assumptions and Inputs. In addition to the assumptions used for the forecasts, we require

Using Microsoft and Dell(Currently), please answer the following questions:

1. Model Assumptions and Inputs. In addition to the assumptions used for the forecasts, we require several additional inputs.

Weighted average cost of capital (WACC) is required to discount future amounts to derive present values. We can find estimates at a number of websites. Find the latest WACC at three or more sites and explore why they differ. One approach would be to use an average in the calculation and then perform sensitivity analysis for the high and the low in the range.

Net nonoperating obligations (NNO) is needed to determine the value of equity from total enterprise value.

Number of shares outstanding. Recall that shares outstanding is equal to shares issued less treasury shares. The balance sheet typically reports both numbers but if not, we can find the amounts in the statement of shareholders' equity or in a footnote.

2.. Interpretation. The final step in the project is to evaluate the companies based on all the analysis performed in the ongoing project.

Revisit the conclusions made about the companies' performance (profit and margin analysis), asset efficiency, solvency, liquidity, off-balance-sheet financing, and future opportunities based on analysis of strengths, weaknesses, opportunities, and threats. Our goal is to assimilate the various components of analysis and to synthesize what we discovered and learned.

Access one or more analyst reports for each company. How do the other professionals see the firms? How does their view differ from ours?

Our analysis was based primarily on historical data from financial statements. What additional information would we like to have to refine our opinion? Is this missing information critical to our opinion?

Based on our analysis, would we consider investing in the company? Explain

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