In mid-2015, Microsoft Corporation had a market capitalization of $340 billion, $35 billion in debt, and $96 billion in cash. If its estimated equity beta was 0.87, estimate Microsoft’s beta.
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In mid-2015, Microsoft Corporation had a market capitalization of $340 billion, $35 billion in debt, and $96 billion in cash. If its estimated equity beta was 0.87, estimate Microsoft’s beta.
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- Apple’s market capitalization in mid-2016 was $484 billion, and its beta was 1.03. At that same time, the company had $25 billion in cash and $69 billion in debt. Based on this data, estimate the beta of Apple’s underlying business enterprise. please show written work!!In mid-2015, Cisco Systems had a market capitalization of $124 billion. It had A-rated debt of $23 billion as well as cash and short-term investments of $60 billion, and its estimated equity beta at the time was 1.24. a. What is Cisco's enterprise value? b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise.In June 2009, Cisco Systems had a market capitalization of $113 billion. It had A-rated debt of $14 billion as well as cash and short-term investments of $34 billion, and its estimated equity beta at the time was 1.28. a. What is Cisco's enterprise value? b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. a. What is Cisco's enterprise value? Cisco's enterprise value is $ billion. (Round to the nearest integer.) b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. The beta of Cisco's underlying business enterprise is. (Round to two decimal places.)
- As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11Calculate the enterprise value of a firm with a market capitalization (market value of equity) of $66 Billion, market value of debt of $22 Billion, and $1 Billion in cash and equivalents. [Note: Enter your answer in Billions; for example, if you calculate the enterprise value to be $100 Billion, then enter just 100 in the answer box.]Give typing answer with explanation and conclusion Pacific Enterprises has a market cap of $4.5 billion, $3.5 billion in debt, an equity beta of 1.1, and a debt beta of 0.10. Your estimate of the asset beta (unlevered beta), for Pacific Enterprises is closest to: Pacific Enterprises has a market cap of $4.5 billion, $3.5 billion in debt, an equity beta of 1.1, and a debt beta of 0.10. Your estimate of the asset beta (unlevered beta), for Pacific Enterprises is closest to: 0.42 0.71 0.66 1.1 0.59 13% 15% 12% 20% 16%
- Your boss wants you to value Microsoft common stock. Microsoft's market capitalization rate is 13% Part 1 Using historical data from Yahoo Finance ("Historical prices"), what was the quarterly growth rate of dividends during 2013 (start of Nov. 2012 to end of Nov. 2013)? Part 2 What is Microsoft's quarterly discount rate? Part 3 What is Microsoft's intrinsic value according to the DDM formula, if you think that dividends will forever grow at the same rate as during 2013, and if we are in late November 2013? Part 4 Your boss thinks that this growth rate will last only for 3 quarters, and that growth will then settle down at half the previous value forever. What is Microsoft's intrinsic value, given the assumption of your boss?Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for Apple. What was the amount of revenues (i.e., sales) generated by the company in 2017? What were the latest annual dividends per share and dividend yield? What is the earnings per share (EPS) projection for 2019? How many shares of common stock were outstanding? What were the book value per share and EPS in 2017? How much long-term debt did the company have in the third quarter of 2018?Plz complete using excel showing formula of work !! The common stock of ABX, Inc. has a beta of 0.90. The Treasury bill rate is 4% and the market risk premium is estimated at 8%. The debt-to-equity ratio of the company is 0.35, the cost of debt is 6%, and the tax rate is 21%. The company is considering a project that will result in initial after-tax cash savings of $5 million at the end of the first year, and these savings will grow at a rate of 4% per year indefinitely. The project is less risky than the usual project the firm undertakes. Management uses the subjective approach and applies an adjustment factor of -1% to the overall cost of capital for similar projects. If the project requires an initial investment of $20 million, what is the NPV?
- You have collected the following information regarding Impi industrula Corporation's historical earnings per share. 2012 =R12.36 2013= R13.60 2014 =R15.82 2015= R17.80 2016= R20.90 2017 = R21.78 Based on your analysis of Impu's fundamentals you estimate that the firm's earnings will continue to grow at its average historical growth rate for the next year but that in the following year, as a result of the launch of a new product the form is currently developing, earnings will grow at a rate of 20% per year for two years. After this, you project that the earnings growth rate will decrease by 5% per year for the next two years, to its long term sustainable rate. You project that the firm will maintain a 50% dividend pay-out ratio and that the appropriate market capitalization rate for Impi Industrial Corporation is 15%. What action would yoh take if the firm's shares are currently trading at R620 per share?Seagate Technology is a global leader in data storage solutions and a high-yield dividend payer. From 2015 through 2019,Seagate paid the following per-share dividends: Year Dividend per share 2019 $2.54 2018 2.21 2017 1.81 2016 1.22 2015 1.48 Assume that the historical annual growth rate of Seagate dividends is an accurate estimate of the future constant annual dividend growth rate. Use a 22% required rate of return to find the value of Seagate's stock immediately after it paid its 2019 dividend of $2.54. The value of Seagate's stock is $Suppose a firm has had the following historic sales figures. Year: 2016 Sales $1,420,000 2017 $1,720,000 Next year's sales 2018 2019 2020 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar. 27
