Financial Management Case Study

Question 2 Assumptions and explanations: 1. All numbers game be in Millions of Dollars, unless differently specified 2. Where given data for first-class honours degree of 2010 is required data from end of 2009 provide be utilise. 3. gross revenue for 2010 and 2011 are taken from Intel estimation. 2012- 2019 annual sales 3.5% harvest-home regularise is estimated, establish on growth esteem average of 2000-2011. 4. Operating in start for 2010-2019 is come out to be 38.1% (average 2000-2011) of Sales. 5. weaken and tear for 2010-2019 is correct to be 12.8% (average 2000-2011) of Sales. 6. Tax 2010-2019 is 30% cook ond to be the same as in 2010-2010. 7. with child(p) Expenditure for 2010is trim to be 15.1% (average 2000-2011) of Sales. We assume that in the grand end bill groovy ingestion and wear and tear should be similar, since in the long term the comp either will invest in assure to book its assets. We modeled the ceiling Expenditure to drop linearly from 2010. In 2019 Capital expenditure is equal Intels estimated depreciation. 8. Working Capital for 2010-2019 is set to be 29.7% (average 2000-2011) of Sales. enthronisation in working detonating device is the establish in WC betwixt two sequential years. 9. Discounted notes break away later on 2020 is calculated using unceasingly growing sempiternity blueprint : NPV = [PMT1/(r-g) ] /[(1+r)^10] Where: PMT=PMT2020= 10,271.

7 r=COC=12% g=3%, We assume persistent term growth rate should equal the gross home(prenominal) product growth of roughly 3%. Final results: 1. FCF for 2010-2019 are presented in the excel file 2. Intels continuance protect is 34.583 millions $ 3. PV of FCF is 75.992Billions $ 4. Total pass judgment is 75.992Billions $ (PV + 3Billion $ of non used cash) 5. Equity= V-D =83.178 Billions $ 6. entertain per share is Total time survey (83.178 Billions $) / # of Shares (5523)=15.06$ per share The effective adjusted trade price of Intel share on 5,Jan,2010 was 20.40 Billion $. 7. The difference amid our calculated share value and the factual market value may derive from any luxate in...If you want to substantiate a full essay, set it on our website: Orderessay

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