Estimate of intrinsic value of home depot stock

Assignment Help Accounting Basics

Reference no: EM13148109

What is your estimate of the intrinsic value of Home Depot's stock as of February 1, 2001, assuming that it will have: (a) the same sales growth rate as in fiscal 2000 for the next fifteen years, (b) a growth rate of 11% beyond year 15, (c) maintain its fiscal 2000 NOPAT margin for the next 15 years and beyond, (d) maintain its fiscal 2000 net working capital to sales ratio, net operating assets to sales ratio for the next 14 years and beyond, (e) maintain its fiscal 2000 book net debt to net capital ratio for the next fourteen years and beyond, (f) a risk free rate of 5.8%, cost of debt of 6%, common equity beta of 1.09, and a market risk premium of 7%.

Reference no: EM13148109

Questions Cloud

Probability-type two error accepting false null hypothesis : Suppose that the actual mean value in the population is , what is the probability of a Type II error (incorrectly accepting a false null hypothesis)?

Calculate the molecular mass of a solute : calculate the molecular mass of a solute with 8.02 grams of solute in 861 grams of water lower the freezing point to -.430 degree Celsius

Analyze a market environment with tacit collusion : Analyze a market environment with tacit collusion, including deterrents from entry.2. Evaluate the profitability of entering the market.3. Examine how the time horizon affects the profitability of entering the market.

How many genes are likely to be directly involved : How many genes are likely to be directly involved in determining the variation in the texture of dandelion petals?

Estimate of intrinsic value of home depot stock : What is your estimate of the intrinsic value of Home Depot's stock as of February 1, 2001, assuming that it will have: (a) the same sales growth rate as in fiscal 2000 for the next fifteen years

What proportion of the progeny will be phenotypically : In the cross between a female A/a; B/b; c/c; D/d; e/e and male A/a; b/b; C/c; D/d; e/e, what proportion of the progeny will be phenotypically identical to the female parent? (Assume independent assortment)

What is the external cost per unit of output : What is the external cost per unit of output?b. What level of output will be produced?c. What level of output should be produced to achieve economic efficiency?

Statements regarding a horizontal analysis : All of the following statements regarding a horizontal analysis are true except:

Calculate confidence interval to find population proportion : Support casinos in the sample? B) calculate a 95% confidence interval to estimate the population proportion of all residents who wupport casinos.

User Account

All Pages