...Wacc for Verizon Communications Inc Answer the following questions concerning WACC: 1. What is the WACC of the company? The WACC for Verizon Communications Inc. is 4.74% 2. What does WACC represent to the firm? The WACC is the rate that a company is expected to pay on average to all its security holders to finance its assets. It is the rate of return required by investors. Investors use WACC as a tool to value a project. If the project is below WACC, it will not generate enough return for the Investor. 3. How does Beta influence the WACC? Beta represents the measure of risk of the company. When using the capital asset pricing model, the beta coefficient is an index of risk. When the risk increases, the investor will expect a higher rate of return. So when the beta increases, it will cause the WACC to increase as well. 4. How does the Risk Free Rate influence the WACC? Another component of the CAPM is the risk free rate, generally taken to be a long-term U.S Treasury bond rate. It is like the opportunity cost for the investors, instead of putting their money in the new investment, they can earn a risk free rate or interest by putting the money into a long-term U.S treasury bond. Therefore, the increase in risk free rate leads to increase in WACC. 5. How does the WACC for a firm and the IRR of a project within the company correlate to each other? A project’s IRR is the discount rate that forces the PV of the expected future cash flows to equal the initial...
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...Verizon Communications Inc. Financial Management Analysis Table of Contents Executive Summary 4 Mission Statement 5 Vision Statement 5 History 5 Business Summary 9 Financial 10 Employees 10 Products Offered 11 Wireless 11 Enterprise/Mid-Market Business 12 Key Enterprise Products and Services 12 Residential/ Small Business 13 Key Residential and Small Business Products and Services 13 Community Work 14 Fast Facts 15 Customers and Target Market 15 Financial Ratios Balance Sheet Balance Sheet Financial Analysis Income Statement Analysis Cash Flows Statement and Analysis WACC Calculation Financial Planning Forecast Forecast Analysis Forecasted Balance Sheet and Analysis Forecasted Income Statement and Analysis Conclusion [pic] Executive Summary Verizon Communications, Inc., with Headquarters in New York City; Operations Center in Basking Ridge, N.J. is a Dow 30 company and the most reliable wireless network with 106.3 million total connections. Verizon, a global leader in providing broadband and other wireless and wire line communications services to mass market, business, government and wholesale customers; operates nearly 143.7 million customer connections (wireless, wire line, broadband and TV) served every day. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic...
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...Verizon Communications Inc. NYSE: VZ Student Investment Fund Stock Report Analysts: Xi Cheng, Tanner McAndrew, Luke Thompson, and Daniel Wadsworth Recommendation: Buy Market Cap: $86.2 B Recent Price: $32.69(12/1/2009) Target Price: $47.11 Industry: Telecom Services Sector: Technology HIGHLIGHTS VZs subsidiary (Verizon Wireless) is the world’s largest wireless service provide VZ is expanding its presence in wireline services through an advance fiber optics network service called FiOS VZ has experienced growth in revenue over the past five years and is on pace for an 11% increase in 2009 VZ has a consistently increased its dividend payout There is large potential growth and development in the Telecom Industry VZ has competitive advantages in distribution network and pipelines Early Adoption of 4G Network Ranked as top 1 wireless service provider in annual consumer report INVESTMENT THESIS Demand for and dependence upon wireless technology has exhibited a strong upward trend which is expected to continue in the future. Verizon is competitively positioned to take advantage of this trend. Broadband service and the popularity of bundled services have increased substantially. With Verizon’s recent investment in this sector, the firm is expected to capture an increasing portion of demand. VZ’s ability to successfully generate a strong ROIC, add economic value, and further improve their dividend payout coming out of a deep recession demonstrates the...
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...Analysis of Return on Equity 4. The company's projected future growth rate of earnings 5. Analysis of its required rate of return using the CAPM measurement 6. The company’s intrinsic value using the discount valuation techniques 7. Conclusions 8. References 1. AT&T Background AT&T Inc. is an American multinational corporation that provides telecommunications services to consumers, businesses, and other providers worldwide. Founded in 1983 as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005, is considered the leading company in the telecommunication industry by Fortune 500 ranked as the number 11th; Headquartered in Dallas, Texas AT&T Inc. has 256,420 employees. AT&T Inc. common stock is listed on the New York Stock Exchange under the symbol of “T” (NYSE: T) making the company one of the 30 stocks that make up the Dow Jones Industrial Average. It is also a Fortune 500 company ranked the largest communications holding company in the world by revenue of $126,723 millions and by profits $3,944 according to the latest results in 2012. Its direct competitor is Verizon Communications with $110,875 millions in revenue and $2,404 millions in profits, 20% bellow of AT&T. According to its 2011 Annual Report, the company has invested $20.3 billions in project for wireless and mobile capabilities, this is represented by 76% of the 2011 revenue with a 7.5% growth year over year; also $10.2 billions paid...
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...1. Company Description: Apple, Inc. was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerarld Wayne in 1976. The company is headquartered is in Cupertino, CA. Apple designs and manufactures personal computers, related software and mobile communication devices. It designs Mac laptops and software such as OS X, iLife and iWork. Apple was a pioneer in digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with the iPhone. Apple has recently introduced its iPad which is drastically changing mobile media and computing devices. The company's products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, iTunes Store, and many other software services. It sells its products worldwide through its retail stores, online stores, direct sales force, and third-party cellular network carriers. Notable U.S. cellular companies that currently offer the iPhone are at&t, Verizon, and Sprint. The company also sells a variety of third-party Mac, iPhone, iPad and iPod compatible products. Which include application software, printers, storage devices, speakers, headphones, etc. In the previous months Apple’s stock price has increased over $200 per share. Many analysts claim that this spike is due to the high productivity and retained earnings that Apple disclosed in last quarter’s financial statements, as well as the company’s recent declaration that they will be paying dividends in the future. 2. Intrinsic Value Analysis: ...
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...Table of Contents Executive Summary 1 Introduction 2 Financial Structure 2 Corporate Governance 5 Value Creation for Investors 6 Market Analysis 7 Future Outlook 8 Challenges and Opportunities 8 Conclusion 9 Bibliography 10 Appendices 12 Table A 12 Table B 12 Table C 13 Chart A 13 Financial Accounts 14 Executive Summary This report provides an overview of the financial position of Symantec Corporation (SYMC), a global provider of security, storage, and systems management solutions. The followings areas are considered: * The Debt and Equity position of the company are analysed. The various sources of financing used by the company are examined and evaluated by looking at the various debt instruments utilised by the company. * The possible value to be gained for investors is gauged by looking at the potential for market capitalisation. * This report also looks at the area of corporate governance, broadly within the Security Software Services industry. * Finally, the report assesses the future outlook in terms of growth, and the challenges and opportunities facing the company in the years ahead and its evolution stratagem. Introduction Symantec Corporation, currently number 391 on the Fortune 500 listing, operates within five segments: Consumer, Security and Compliance, Storage and Server Management, Services, and Other; hence Symantec is incontrovertibly diversified within the IT industry. The Company conducts business in...
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...linshan-li@uiowa.edu Apple Inc. (NSDQ: AAPL) April 17, 2012 Current Price $609.60 Target Price $765-790 Apple Bytes Its Way To The Top The iPad has revolutionized the booming tablet industry and is dominating a 61% market share with a unit sales increase of 111% over the year ago quarter. A yearly increase of 334% in sales volume during FY2011 makes the iPad the most popular product in the tablet industry. Apple shattered analysts’ expectations for Q1 of its FY2012 with 37.04 million iPhones sold representing 128% unit growth over the year ago quarter. The iPhone is penetrating emerging markets in China, Asia-Pacific, and Europe targeting global growth. Future product innovation in the iPhone fifth generation and iPad fourth generation will capture more market share while sustaining high levels of growth. Apple’s potential for penetrating the television market will again affirm its position as the top producer in consumer electronics. CEO Tim Cook announced dividends to be paid to shareholders beginning next quarter at a yield of 1.8% or $2.65 per share. He also announced a $10 billion buyback starting in fiscal year 2013, and continuing through 2014 and 2015; signaling an undervalued company. On January 25, 2012, Apple topped Exxon Mobile as the largest company in the world by market capitalization; currently at $568.5 billion. Share price has consistently grown with a 48.26% increase YTD and a five year increase of 570.22%. Company Overview Apple Inc. was established...
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...INTERNATIONAL SCHOOL OF INFORMATICS AND MANAGMENT For partial fulfillment of MBA programme 2011-2013 [pic] CONTEMPORARY REPORT ON “ STRATEGY ANALYSIS OF APPLE CORPORATION AND ITS PRODUCTS” [pic] |Submitted to: |Submitted by: | |Mr.Sandeep Vyas | Neha Singh | |Mr.Rahul Sharma |MBA/11/2065 | | | | CERTIFICATE This is to certify that the project work of market research and analysis in the report entitled “Strategy analysis of apple corporation and its product” is a bonafide work carried out by Ms. Neha singh under my supervision and guidance. The project is submitted for the partial fulfillment of the requirement for the award of Masters of Business Administration. The project is the original work carried out by the Student herself. Date:26/04/2012 Faculty Mentor: Mr.Sandeep Vyas Mr.Rahul Sharma PREFACE This project has been undertaken to understand the strategy of Apple...
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...Customer Relationship Management VSF This book is dedicated to my children Emma and Lewis of whom I am enormously proud. Customer Relationship Management Concepts and Technologies Second edition Francis Buttle AMSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD PARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2009 Copyright © 2009, Francis Buttle Published by Elsevier Ltd. All rights reserved. The right of Francis Buttle to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax: ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/ permissions, and selecting Obtaining permission to use Elsevier material. Notice No responsibility is assumed by the publisher for any injury and/or damage...
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...2 01 2 A N N UA L R E PO R T — 1 2012 Annual Report Every day, millions of people around the globe choose to make Yahoo! a part of their daily digital routines. Yahoo! is relentlessly focused on making the world’s daily habits inspiring and entertaining. We’re well positioned to serve users’ everyday passions and needs — whether they’re searching for information, emailing, sharing photos of their families or friends, or simply checking the weather, sports scores or stock quotes. We are committed to bringing users the best products and the most immersive digital experiences, personalized to their interests, across screens and platforms. This focus on product excellence is key to engaging even more users, delivering value for our partners and advertisers, and creating powerful momentum for a new cycle of innovation and growth at Yahoo!. We believe that our commitment to the people who work at Yahoo! will have long-lasting benefits for our users, advertisers, partners, and shareholders. To our shareholders It’s been an exciting year at Yahoo! — one of great change and great inspiration. We have significantly increased our pace of execution and focused on product excellence, user experience, and growth. Our financials have seen continued stability; in fact, 2012 was our first year of ex-TAC revenue growth in four years. Over the past 18 years, Yahoo! has become a daily habit for hundreds of millions of users worldwide and has grown into one of the Internet’s most...
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...Cash Flow Forecasting Essential Capital Markets Books in the series: Cash Flow Forecasting Corporate Valuation Credit Risk Management Finance of International Trade Mergers and Acquisitions Portfolio Management in Practice Introduction to Project Finance Syndicated Lending Cash Flow Forecasting Edited by Andrew Fight A MSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD P ARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA 01803 First published 2006 Copyright © 2006, Andrew Fight. All rights reserved. Note The materials contained in this book remain the copyrighted intellectual property of Andrew Fight, are destined for use in his consulting activities, and are to be clearly identified as copyrighted to him. Andrew Fight has asserted his right under the Copyrights, Designs, and Patents Act 1988, to be identified as author of this work, and confirms that he retains ownership of the intellectual property and rights to use these materials in his training courses and consulting activities. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission...
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...FUNDAMENTALS OF Corporate Finance SECOND EDITION This page intentionally left blank FUNDAMENTALS OF Corporate Finance SECOND EDITION Jonathan Berk STANFORD UNIVERSITY Peter DeMarzo STANFORD UNIVERSITY Jarrad Harford UNIVERSITY OF WASHINGTON Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo The Prentice Hall Series in Finance Alexander/Sharpe/Bailey Fundamentals of Investments Bear/Moldonado-Bear Free Markets, Finance, Ethics, and Law Berk/DeMarzo Corporate Finance* Berk/DeMarzo Corporate Finance: The Core* Berk/DeMarzo/Harford Fundamentals of Corporate Finance* Bierman/Smidt The Capital Budgeting Decision: Economic Analysis of Investment Projects Bodie/Merton/Cleeton Financial Economics Click/Coval The Theory and Practice of International Financial Management Copeland/Weston/Shastri Financial Theory and Corporate Policy Cox/Rubinstein Options Markets Dietrich Financial Services and Financial Institutions: Value Creation in Theory and Practice Dorfman Introduction to Risk Management and Insurance Dufey/Giddy Cases in International Finance Eakins Finance in .learn Eiteman/Stonehill/Moffett Multinational Business Finance Emery/Finnerty/Stowe Corporate Financial Management Fabozzi Bond Markets: Analysis and Strategies Fabozzi/Modigliani Capital Markets: Institutions...
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