Develop a full growth-return profile for cisco

Assignment Help Finance Basics
Reference no: EM131491575

Question: A Growth-Return Profile for Cisco Systems, Inc. (Medium) In November 2009, Cisco Systems; shares traded at $24 each, with a total market equity capitalization of $138.8 billion. The most recent balance sheet reported net operating assets of $13.9 billion, along with $24.7 billion in net financial assets. A financial statement analysis produced a forecast of 57 .1 percent for return on net operating assets (RNOA) for the next fiscal year.

a. Calculate the expected return from buying the enterprise at the current market price if no growth is expected after the forward year.

b. Calculate the expected return from buying the enterprise if you expect a growth rate equal to the GDP growth rate of 4 percent after the forward year.

c. Develop a full growth-return profile for Cisco, like that in Figure.

d. How does this profile help you in your investment decision?

1264_19.6.png

Reference no: EM131491575

Questions Cloud

Discuss whether kit is a resident of australia : Discuss whether Kit is a resident of Australia and how his salary and investment income would be taxed (max. 1000 words).
Why is feedback essential for problem solving in any system : Define the term feedback. Why is feedback essential for problem solving in any system?
What is the standard deviation of portfolio : What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock T?
Distinguish between issues and positions in a conflict : How would you distinguish between issues and positions in a conflict? Give a specific example: 500 Words
Develop a full growth-return profile for cisco : A Growth-Return Profile for Cisco Systems, Inc. (Medium) In November 2009, Cisco Systems; shares traded at $24 each, with a total market equity capitalization.
What is the dividend rate on preferred stock : What is the par value of the preferred stock? If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
What is the standard deviation of a portfolio : What is the standard deviation of a portfolio that is invested 40 percent in Stock Q and 60 percent in Stock R?
In profitable transaction when you are selling property : In a profitable transaction when you are selling a property, what is true about the going in and exit (going-out, or reversion) cap rates?
Impact of social networks on the communication skills : Identify the relevant literature, extract necessary information in form of opinions and viewpoints that should be further compared or contrasted depending on their nature

Reviews

Write a Review

Finance Basics Questions & Answers

  Relative volatility of short and long term interest rates

Describe how rapidly expending sales can drain the cash resources of a firm and discuss and explain the relative volatility of short-and long-term interest rates.

  Value of the long position

Suppose the value of the long position is $35.34 million, your largest arbitrage profits in would be_____million.

  Why do you think so many pieces of important legislation

Why do you think so many pieces of important legislation related to financial markets and institutions were passed during the Great Depression?

  A recent article concerning bullish and bearish sentiment

a recent article concerning bullish and bearish sentiment about the stock market reported that 41 of investors

  Csh flow from long term investing activities totaled

w.c cycling had 55000 in cash at year end 2007 and 25000 in cash at year-ended 2008. cash flow from long term

  Calculate the terminal net profit value for a covered call

For each of the following expiration date values for the unhedged equity position, calculate the terminal values (net of initial expense) for a protective put strategy. 35, 40, 45, 50, 55, 60, 65, 70, 75

  A commercial bank is willing to make you a loan of 10000

a commercial bank is willing to make you a loan of 10000. the bank wants a 12 percent interest rate and requires five

  Dodd-frank and sarbanes-oxley acts

An explanation of what relationship the Dodd-Frank and Sarbanes-Oxley Acts have to financial markets and what are the similarities or differences between these Acts.

  What is the npv of the project

The applicable corporate tax rate is 40%, and the firm's WACC is 14%. Should the old welder be replaced by the new one? What is the NPV of the project? Round your answer to the nearest cent.

  Examine the marketing mix elements

The success of this product represents a success for marketing. In this discussion thread we will examine some of the reasons for its success.

  Abc companys preferred stock is selling or 25 a share if

abc companys preferred stock is selling or 25 a share. if the required return is 12 what will the dividend be two years

  Section on implications and recommendations

In the final section of study reports, there is a section on implications and recommendations. Describe the difference between these terms. Provide examples from one of the studies that you critiqued.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd