What is estimated cost of equity

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Reference no: EM131155329

Intel Corporation is a leading manufacturer of semiconductor chips. The firm was incorporated in 1968 in Santa Clara, California, and represents one of the greatest success stories of the computer age.

Although Intel continues to grow, the industry in which it operates has matured, so there is some question whether the firm should be evaluated as a high-growth company or stable-growth company from now on.

For example, in December 2007, the firm's shares were trading for $20.88, and has a price-earnings ratio of 17.622.

Compared to Google Inc.'s price-earnings ratio of 53.71 on the same date, it would appear that the decision has already been made by the market.

Intel's expected earnings for 2007 were $1.13 per share, and its payout ratio was 48%. Furthermore, selected financial data for the sector, industry, and seven of the largest firms (including Intel) are found in Exhibit P8-9.1 on page 301.
Alternate View

Sector: industrial goods 16.606 14.94% 1.48% 0.87 50.471 5.40% 75.481
Industry: industrial equipment and components 15.900 18.40% 1.41% 0.649 10.11 7.90% -134.9
Emerson Electric Co. $34.61B 19.276 23.72% 2.40% 0.494 4.257 9.54% 65.156
Parker-Hannifin Corp. 9.81B 14.150 18.16% 1.20% 0.308 2.298 8.25% 34.392
Roper Industries Inc. 4.44B 24.685 14.27% 0.50% 0.603 3.122 11.89% 232.735
Pentair Inc. 3.23B 17.943 11.56% 1.70% 0.485 1.974 4.48% 147.667
Walter Industries Inc. 2.19B 23.537 15.70% 0.30% 4.036 2.731 7.38%

-10.682

a.
P/E=
ROE=
Dividend Yield=
LTD to Equity=
Price to Book=
Net Profit Margin=
Price to Cash Flow=

b.
Estimated cost of equity=
Estimated growth rate=
DCF Estimate of Share Price=

c.
Imputed growth rate=

d.
Estimated future dividends=

Year Earnings Dividends
2007  $ 1.13  
2008    
2009    
2010    
2011    

Future growth rate

Value of Intel Shares (2-stage)
2007-2011 :
2011 and beyond :
Estimated equity value:

Attachment:- PROBLEM.rar

Reference no: EM131155329

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