5. Calculate the Book Value of Equity for XYZ? What is the Book Value per share (use the most recent number of shares given)? If the Stock is currently trading in the marketplace at $70 per share, is the stock trading above or below the book value per share? What does this tell us? 6. Calculate the P/E ratio for the current year, if the price of the stock is $70 per share. If the Forward P/E ratio for the firm is 15, what does that tell investors? Additionally, if the P/E Ratio of a competitor is currently 12 and the Forward P/E is 20, what does this mean for the competitor firm. Finally, what do the two ratios (P/E and Forward PE) tell us about the firms as competitors? What are market expectations? 2018 2019 42,294.00 13,509.00 28,785.00 10,102.00 9,752.00 0 19,854.00 46,840.00 14.112.00 32,728.00 10,615.00 9,872.00 0 20,487.00 12,241.00 8,931.00 Income Statement (all data in Millions) Year 2016 2017 Revenue 39,807.00 40,122.00 Cost of Goods Sold 14,030.00 12,912.00 Gross Profit 25,777.00 27,210.00 Selling, General, & Admin. Expense 10,017.00 10,074.00 Research & Development 10,261.00 10,339.00 Other Operating Expense 0 0 Total Operating Expense 20,278.00 20,413.00 Operating Income 5,499.00 6,797.00 Interest Income 328 385 Interest Expense -693 -754 Net Interest Income -365 -369 Other Income (Expense) -475 93 Pre-Tax Income 4,659.00 6,521.00 Tax Provision -718 -4,103.00 Tax Rate % 15.41 62.92 Net Income (Continuing Operations) 3,941.00 2,418.00 Net Income (Discontinued Operations) 0 0 Other Income (Minority Interest) -21 -24 Net Income 3,920.00 2,394.00 343 274 -772 -893 -429 -619 199 -158 8,701.00 -2,508.00 28.82 6,193.00 0 11,464.00 -1,687.00 14.72 9,777.00 0 66 27 6,220.00 9,843.00 Shares Outstanding 2,787.00 2,748.00 2,679.00 2,580.00 0 0 0 0 0 0 0 Balance Sheet (all data in Millions) Year 2016 2017 2018 2019 Cash And Cash Equivalents 6,515.00 6,092.00 7,965.00 9,676.00 Marketable Securities 7,826.00 2,406.00 899 774 Cash, Cash Equivalents, Marketable Securities 14,341.00 8,498.00 8,864.00 10,450.00 Accounts Receivable 7,018.00 6,873.00 7,071.00 6,778.00 Notes Receivable 0 0 0 Loans Receivable 0 0 0 0 Other Current Receivables 0 0 Total Receivables 7,018.00 6,873.00 7,071.00 6,778.00 Inventories, Raw Materials & Components 0 0 Inventories, Work In Process 0 0 0 Inventories, Inventories Adjustments 0 0 0 0 Inventories, Finished Goods 0 0 Inventories, Other 4,866.00 5,096.00 5,440.00 5,978.00 Total Inventories 4,866.00 5,096.00 5,440.00 5,978.00 Other Current Assets 4,389.00 4,299.00 4,500.00 4,277.00 Total Current Assets 30,614.00 24,766.00 25,875.00 27,483.00 Investments And Advances 11,416.00 12,125.00 6,233.00 1,469.00 Land And Improvements 412 365 333 343 Buildings And Improvements 11,439.00 11,726.00 11,486.00 11,989.00 Machinery, Furniture, Equipment 14,053.00 14,649.00 14,441.00 15,394.00 Construction In Progress 1,871.00 2,301.00 3,355.00 5,013.00 Other Gross PPE 0 0 0 Gross Property, Plant and Equipment 27,775.00 29,041.00 29,615.00 32,739.00 Accumulated Depreciation -15,749.00 -16,602.00 -16,324.00 -17,686.00 Property, Plant and Equipment 12,026.00 12,439.00 13,291.00 15,053.00 Intangible Assets 35,467.00 32,467.00 31,357.00 33,621.00 Goodwill 18,162.00 18,284.00 18,253.00 19,425.00 0 Other Long Term Assets Total Long-Term Assets Total Assets Accounts Payable Total Tax Payable Other Current Payables Current Accrued Expense Accounts Payable & Accrued Expense Short-Term Debt Short-Term Capital Lease Obligation Short-Term Debt & Capital Lease Obligation Current Deferred Revenue Current Deferred Taxes Liabilities DeferredTaxAndRevenue Other Current Liabilities Total Current Liabilities Long-Term Debt Long-Term Capital Lease Obligation Long-Term Debt & Capital Lease Obligation Pension And RetirementBenefit NonCurrent Deferred Liabilities Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Common Stock Preferred Stock Retained Earnings Accumulated other comprehensive income (loss) Additional Paid-In Capital Treasury Stock Other Stockholders Equity Total Stockholders Equity Minority Interest Total Equity 5,854.00 6,075.00 5,881.00 6,771.00 64,763.00 63,106.00 56,762.00 56,914.00 95,377.00 87,872.00 82,637.00 84,397.00 2,807.00 3,102.00 3,318.00 3,738.00 2,239.00 708 1,971.00 736 1,316.00 1,320.00 1,458.00 1,587.00 10,274.00 10,427.00 10,151.00 12,549.00 16,636.00 15,557.00 16,898.00 18,610.00 568 3,057.00 5,308.00 3,610.00 0 0 0 0 568 3,057.00 5,308.00 3,610.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17,204.00 18,614.00 22,206.00 22,220.00 24,274.00 21,353.00 19,806.00 22,736.00 0 0 0 24,274.00 21,353.00 19,806.00 22,736.00 0 0 0 0 5,077.00 2,219.00 1,702.00 1,470.00 8,514.00 11,117.00 12,041.00 11,970.00 37,865.00 34,689.00 33,549.00 36,176.00 55,069.00 53,303.00 55,755.00 58,396.00 1,788.00 1,788.00 1,788.00 1,788.00 0 0 0 0 44,133.00 41,350.00 42,579.00 46,602.00 -5,226.00 -4,910.00 -5,545.00 -6,193.00 39,939.00 39,902.00 38,808.00 39,660.00 -40,546.00 -43,794.00 -50,929.00 -55,950.00 0 0 0 40,088.00 34,336.00 26,701.00 25,907.00 220 233 181 94 40,308.00 34,569.00 26,882.00 26,001.00 0 Statement of Cashflow (all data in Millions) Year 2016 2017 2018 2019 Net Income From Continuing Operations 3,941.00 2,418.00 6,193.00 9,777.00 Depreciation, Depletion and Amortization 5,471.00 4,676.00 4,519.00 3,652.00 Change In Receivables -619 297 -418 294 Change In Inventory 206 -145 -911 -508 Change In Prepaid Assets Change In Payables And Accrued Expense -1,616.00 -3,959.00 716 -1,584.00 Change In Other Working Capital -572 -1,210.00 -940 -269 Change In Working Capital -2,601.00 -5,017.00 -1,553.00 -2,067.00 Deferred Tax -1,521.00 -2,621.00 -509 -556 Stock Based Compensation 300 312 348 417 Asset Impairment Charge 3,948.00 646 296 1,040.00 Cash from Discontinued Operating Activities 0 0 0 0 Cash Flow from Others 838 6,037.00 1,628.00 1,177.00 Cash Flow from Operations 10,376.00 6,451.00 10,922.00 13,440.00 Purchase Of Property, Plant, Equipment -1,614.00 -1,888.00 -2,615.00 -3,473.00 Sale Of Property, Plant, Equipment 0 0 0 Purchase of Business -780 -396 -431 -4,954.00 Sale Of Business 0 0 Purchase Of Investment -15,651.00 -10.739.00 -7,994.00 -3,202.00 Sale Of Investment 14,353.00 15,664.00 15,252.00 8,622.00 Net Intangibles Purchase And Sale 0 Cash From Discontinued Investing Activities 0 0 0 Cash From Other Investing Activities 482 38 102 378 Cash Flow from Investing -3,210.00 2,679.00 4,314.00 -2,629.00 Issuance of Stock 0 0 0 0 Repurchase of Stock -3,434.00 -4,014.00 -9,091.00 -4,780.00 Net Issuance of Preferred Stock 0 0 0 Net Issuance of Debt -1,307.00 -1,129.00 837 1,248.00 Cash Flow for Dividends -5,124.00 -5,167.00 -5,172.00 -5,695.00 Other Financing 821 304 266 366 Cash Flow from Financing -9,044.00 -10,006.00 -13,160.00 -8,861.00 0 0 0 0 0 0 0 0 5. Calculate the Book Value of Equity for XYZ? What is the Book Value per share (use the most recent number of shares given)? If the Stock is currently trading in the marketplace at $70 per share, is the stock trading above or below the book value per share? What does this tell us? 6. Calculate the P/E ratio for the current year, if the price of the stock is $70 per share. If the Forward P/E ratio for the firm is 15, what does that tell investors? Additionally, if the P/E Ratio of a competitor is currently 12 and the Forward P/E is 20, what does this mean for the competitor firm. Finally, what do the two ratios (P/E and Forward PE) tell us about the firms as competitors? What are market expectations? 2018 2019 42,294.00 13,509.00 28,785.00 10,102.00 9,752.00 0 19,854.00 46,840.00 14.112.00 32,728.00 10,615.00 9,872.00 0 20,487.00 12,241.00 8,931.00 Income Statement (all data in Millions) Year 2016 2017 Revenue 39,807.00 40,122.00 Cost of Goods Sold 14,030.00 12,912.00 Gross Profit 25,777.00 27,210.00 Selling, General, & Admin. Expense 10,017.00 10,074.00 Research & Development 10,261.00 10,339.00 Other Operating Expense 0 0 Total Operating Expense 20,278.00 20,413.00 Operating Income 5,499.00 6,797.00 Interest Income 328 385 Interest Expense -693 -754 Net Interest Income -365 -369 Other Income (Expense) -475 93 Pre-Tax Income 4,659.00 6,521.00 Tax Provision -718 -4,103.00 Tax Rate % 15.41 62.92 Net Income (Continuing Operations) 3,941.00 2,418.00 Net Income (Discontinued Operations) 0 0 Other Income (Minority Interest) -21 -24 Net Income 3,920.00 2,394.00 343 274 -772 -893 -429 -619 199 -158 8,701.00 -2,508.00 28.82 6,193.00 0 11,464.00 -1,687.00 14.72 9,777.00 0 66 27 6,220.00 9,843.00 Shares Outstanding 2,787.00 2,748.00 2,679.00 2,580.00 0 0 0 0 0 0 0 Balance Sheet (all data in Millions) Year 2016 2017 2018 2019 Cash And Cash Equivalents 6,515.00 6,092.00 7,965.00 9,676.00 Marketable Securities 7,826.00 2,406.00 899 774 Cash, Cash Equivalents, Marketable Securities 14,341.00 8,498.00 8,864.00 10,450.00 Accounts Receivable 7,018.00 6,873.00 7,071.00 6,778.00 Notes Receivable 0 0 0 Loans Receivable 0 0 0 0 Other Current Receivables 0 0 Total Receivables 7,018.00 6,873.00 7,071.00 6,778.00 Inventories, Raw Materials & Components 0 0 Inventories, Work In Process 0 0 0 Inventories, Inventories Adjustments 0 0 0 0 Inventories, Finished Goods 0 0 Inventories, Other 4,866.00 5,096.00 5,440.00 5,978.00 Total Inventories 4,866.00 5,096.00 5,440.00 5,978.00 Other Current Assets 4,389.00 4,299.00 4,500.00 4,277.00 Total Current Assets 30,614.00 24,766.00 25,875.00 27,483.00 Investments And Advances 11,416.00 12,125.00 6,233.00 1,469.00 Land And Improvements 412 365 333 343 Buildings And Improvements 11,439.00 11,726.00 11,486.00 11,989.00 Machinery, Furniture, Equipment 14,053.00 14,649.00 14,441.00 15,394.00 Construction In Progress 1,871.00 2,301.00 3,355.00 5,013.00 Other Gross PPE 0 0 0 Gross Property, Plant and Equipment 27,775.00 29,041.00 29,615.00 32,739.00 Accumulated Depreciation -15,749.00 -16,602.00 -16,324.00 -17,686.00 Property, Plant and Equipment 12,026.00 12,439.00 13,291.00 15,053.00 Intangible Assets 35,467.00 32,467.00 31,357.00 33,621.00 Goodwill 18,162.00 18,284.00 18,253.00 19,425.00 0 Other Long Term Assets Total Long-Term Assets Total Assets Accounts Payable Total Tax Payable Other Current Payables Current Accrued Expense Accounts Payable & Accrued Expense Short-Term Debt Short-Term Capital Lease Obligation Short-Term Debt & Capital Lease Obligation Current Deferred Revenue Current Deferred Taxes Liabilities DeferredTaxAndRevenue Other Current Liabilities Total Current Liabilities Long-Term Debt Long-Term Capital Lease Obligation Long-Term Debt & Capital Lease Obligation Pension And RetirementBenefit NonCurrent Deferred Liabilities Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Common Stock Preferred Stock Retained Earnings Accumulated other comprehensive income (loss) Additional Paid-In Capital Treasury Stock Other Stockholders Equity Total Stockholders Equity Minority Interest Total Equity 5,854.00 6,075.00 5,881.00 6,771.00 64,763.00 63,106.00 56,762.00 56,914.00 95,377.00 87,872.00 82,637.00 84,397.00 2,807.00 3,102.00 3,318.00 3,738.00 2,239.00 708 1,971.00 736 1,316.00 1,320.00 1,458.00 1,587.00 10,274.00 10,427.00 10,151.00 12,549.00 16,636.00 15,557.00 16,898.00 18,610.00 568 3,057.00 5,308.00 3,610.00 0 0 0 0 568 3,057.00 5,308.00 3,610.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 17,204.00 18,614.00 22,206.00 22,220.00 24,274.00 21,353.00 19,806.00 22,736.00 0 0 0 24,274.00 21,353.00 19,806.00 22,736.00 0 0 0 0 5,077.00 2,219.00 1,702.00 1,470.00 8,514.00 11,117.00 12,041.00 11,970.00 37,865.00 34,689.00 33,549.00 36,176.00 55,069.00 53,303.00 55,755.00 58,396.00 1,788.00 1,788.00 1,788.00 1,788.00 0 0 0 0 44,133.00 41,350.00 42,579.00 46,602.00 -5,226.00 -4,910.00 -5,545.00 -6,193.00 39,939.00 39,902.00 38,808.00 39,660.00 -40,546.00 -43,794.00 -50,929.00 -55,950.00 0 0 0 40,088.00 34,336.00 26,701.00 25,907.00 220 233 181 94 40,308.00 34,569.00 26,882.00 26,001.00 0 Statement of Cashflow (all data in Millions) Year 2016 2017 2018 2019 Net Income From Continuing Operations 3,941.00 2,418.00 6,193.00 9,777.00 Depreciation, Depletion and Amortization 5,471.00 4,676.00 4,519.00 3,652.00 Change In Receivables -619 297 -418 294 Change In Inventory 206 -145 -911 -508 Change In Prepaid Assets Change In Payables And Accrued Expense -1,616.00 -3,959.00 716 -1,584.00 Change In Other Working Capital -572 -1,210.00 -940 -269 Change In Working Capital -2,601.00 -5,017.00 -1,553.00 -2,067.00 Deferred Tax -1,521.00 -2,621.00 -509 -556 Stock Based Compensation 300 312 348 417 Asset Impairment Charge 3,948.00 646 296 1,040.00 Cash from Discontinued Operating Activities 0 0 0 0 Cash Flow from Others 838 6,037.00 1,628.00 1,177.00 Cash Flow from Operations 10,376.00 6,451.00 10,922.00 13,440.00 Purchase Of Property, Plant, Equipment -1,614.00 -1,888.00 -2,615.00 -3,473.00 Sale Of Property, Plant, Equipment 0 0 0 Purchase of Business -780 -396 -431 -4,954.00 Sale Of Business 0 0 Purchase Of Investment -15,651.00 -10.739.00 -7,994.00 -3,202.00 Sale Of Investment 14,353.00 15,664.00 15,252.00 8,622.00 Net Intangibles Purchase And Sale 0 Cash From Discontinued Investing Activities 0 0 0 Cash From Other Investing Activities 482 38 102 378 Cash Flow from Investing -3,210.00 2,679.00 4,314.00 -2,629.00 Issuance of Stock 0 0 0 0 Repurchase of Stock -3,434.00 -4,014.00 -9,091.00 -4,780.00 Net Issuance of Preferred Stock 0 0 0 Net Issuance of Debt -1,307.00 -1,129.00 837 1,248.00 Cash Flow for Dividends -5,124.00 -5,167.00 -5,172.00 -5,695.00 Other Financing 821 304 266 366 Cash Flow from Financing -9,044.00 -10,006.00 -13,160.00 -8,861.00 0 0 0 0 0 0 0 0
