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he Two-Stage DDM. Your estimate for g2 is the growth rate that you expect will continue “forever” in the second stage. Your estimate for g2 should not be much greater than the expected future growth in the overall economy (expected growth in GDP). Why? LIST your estimate for g2 and provide a short paragraph that EXPLAINS your reasoning AND the source of your estimate for long-term growth in GDP. Finally, estimate and LIST a price per share for KO using your estimates for g1, N, Re, g2 and KO’s current annual dividend (most recent quarterly dividend x 4) as D(0) in the Two-Stage DDM (submit your spreadsheet).
2. Calculate KO’s FCFF for EACH of the past five (5) years using the financial statement data found in KO’s annual reports and using the FCFFM.xls template. The template will calculate the annual FCFF value for you, but you MUST insert the correct input values for Depreciation & Amortization, Capital Investment, Capital Sales, etc.
3. Assume that the average annual FCFF from Q5 is good estimate of KO’s FCFF(0) for use in the FCFM. LIST your estimate for FCFF(0) then estimate and LIST a price per share for KO using your estimates for g1, N, WACC, g2 and FCFF(0) in the Two-Stage FCFFM (submit your spreadsheet).Use the same estimate second stage or stable stage growth, g2, in the FCFFM that you selected for the DDM.
4. Apply Relative Valuation methods to Coca-Cola (KO) using the following three (3) popular relative valuation ratios - Price/Earnings, Price/Book, Price/Sales (call these three ratios Price/”X” ratios). Select at least five (5) comparable firms that are in the same industry as KO and use the average P/X ratio for the group of comparable firms in your valuation analysis. The P/X ratios for the template can be found by using the screener on the Finviz.comwebsite. Use the Relative Valuation (RV) Excel spreadsheet tab found in the Two Stage_DDM_FCFE_FCFF_RV.xlsx file.
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lve an equation, find the derivative of a function at a point, or calculate the value of a definite integral. However, you must clearly indicate the setup of your question, namely the equation, function, or integral you are using. If you use other built-in features or programs, you must show the mathematical steps necessary to produce your results. Your work must be expressed in standard mathematical notation rather than calculator syntax.
Show all of your work, even though the question may not explicitly remind you to do so. Clearly label any functions, graphs, tables, or other objects that you use. Justifications require that you give mathematical reasons, and that you verify the needed conditions under which relevant theorems, properties, definitions, or tests are applied. Your work will be scored on the correctness and completeness of your methods as well as your answers. Answers without supporting work will usually not receive credit.
Unless otherwise specified, answers (numeric or algebraic) need not be simplified. If your answer is given as a decimal approximation, it should be correct to three places after the decimal point.
Unless otherwise specified, the domain of a function f is assumed to be the set of all real numbers x for which f(x) is a real number.
Let f be a twice-differentiable function such that f′(2)=0 . The second derivative of f is given by f′′(x)=x2e2−x−1 for 0≤x≤6 .
(a) On what open intervals contained in 0
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, a standard deviation of $1 would be considered large if it is describing the variability from store to store in the price of an ice cube tray. On the other hand, a standard deviation of $1 would be considered small if it is describing store-to-store variability in the price of a particular brand of freezer. A quantity designed to give a relative measure of variability is the coefficient of variation. Denoted by CV, the coefficient of variation expresses the standard deviation as a percentage of the mean. It is defined by the formula CV = 100(s/ x ). Consider two samples. Sample 1 gives the actual weight (in ounces) of the contents of cans of pet food labeled as having a net weight of 8 oz. Sample 2 gives the actual weight (in pounds) of the contents of bags of dry pet food labeled as having a net weight of 50 lb. There are weights for the two samples.
Sample 1 7.7 6.8 6.5 7.2 6.5
7.7 7.3 6.6 6.6 6.1
Sample 2 50.7 50.9 50.5 50.3 51.5
47 50.4 50.3 48.7 48.2
(a) For each of the given samples, calculate the mean and the standard deviation. (Round all intermediate calculations and answers to five decimal places.)
For sample 1
Mean
Standard deviation
For sample 2
Mean
Standard deviation
(b) Compute the coefficient of variation for each sample. (Round all answers to two decimal places.)
CV1
CV2
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1.AU MAT 120 Systems of Linear Equations and Inequalities Discussion
mathematicsalgebra Physics