Submitted by: Submitted by Hobo
Views: 622
Words: 750
Pages: 3
Category: Business and Industry
Date Submitted: 03/08/2012 11:34 AM
1. Book Value of Equity $6,813,000,000
Book Value of Debt $5,168,000,000
Total Book Value $11,981,000,000
2. What is the most recent stock price for dell? $15.54
What is the market value of equity or market capitalization? $29,590,000,000
How many shares of stock does dell have outstanding? 1,910,000,000
What is the beta for Dell? 1.41
Yield on a 3-month treasury bill? 0.03%
Using 7% market risk premium, cost of equity for dell using CAPM?
= 0.03% + (1.41x7%)
= 9.9%
3. Competitors BETA
Apple 1.34
Hewlett-Packard Company 1.03
Acer Incorporated 1.00
Toshiba Corporation 1.44
Sony Corporation 1.58
Levono Group Limited 1.81
International Business Machines Corp. 0.73
Samsung Electronics Co., Ltd (005930.KS) 0.55
Samsung Electronics Co., Ltd (005935.KS) 0.55
Oracle Corporation 1.12
Industry Average Beta = 1.415
Cost of Equity =
= 0.03% + (1.415x7%)
= 9.935%
It doesn’t matter whether the beta from Dell or the industry average beta is used because they are nearly the same value.
4.
YTM | Book Value (In Millions) | Percentage of Total | Price (as % of Par) | Market Value (In Millions) | Percentage of Total | Book Weight Value (%) | Market Weight Value(%) |
0.546 | 400 | 8.17% | 102.926 | 411.7 | 7.67% | 0.045 | 0.042 |
1.156 | 609 | 12.44% | 106.542 | 648.84 | 12.09% | 0.144 | 0.140 |
1.064 | 499 | 10.20% | 100.751 | 502.75 | 9.37% | 0.108 | 0.010 |
1.505 | 500 | 10.21% | 111.535 | 557.68 | 10.39% | 0.154 | 0.156 |
2.136 | 700 | 14.30% | 110.665 | 774.66 | 14.44% | 0.305 | 0.308 |
3.864 | 499 | 10.20% | 110.68 | 552.29 | 10.29% | 0.394 | 0.397 |
4.023 | 600 | 12.25% | 112.606 | 675.66 | 12.59% | 0.493 | 0.506 |
5.48 | 389 | 7.94% | 117.679 | 457.77 | 8.53% | 0.435 | 0.467 |
5.544 | 400 | 8.17% | 113.273 | 453.09 | 8.44% | 0.453 | 0.468 |
5.354...