For your initial post, you will calculate the current share price of Visa based upon the values from the accounting statements for 2018. V Financial Statements Final Project a You must include your calculations in your initial post. As reported in Morningstar (Park Library Database), Visa reported FCF of 11,995 (million) in 2018. To perform this calculati Cash Flow using the model from Chapter 9 (figure 9.21). You will project the next 11 years (2019-2029) to calculate the DCF. Use the calculated DCF and calculate the share price using formula 9.22. Use the following assumptions for this calculations: Assumptions for Calculations Assumptions FCF Annual Growth 22% Discount Rate 8.0% Shares outstanding 2231 Debt 16630 Cash 11709 In your responses to peers, critically evaluate the limitations with the DCF model and analyze another method of stock valuation which could be used with potential advantages or disadvantages. 2014-09 2015-09 2016-09 2017-09 2018-09 5619 1027 2740 3 977 2150 9874 1031 2554 1926 2253 8162 1491 2790 4082 2472 1971 1498 1699 3050 1892 1028 11753 11411 4267 38569 3518 1072 1332 3429 1888 871 11825 11361 4940 40236 15066 27234 6222 64035 15110 27848 7381 67977 15194 27558 7476 69225 VISA INC CLASS A (V) CashFlowFlag BALANCE SHEET Fiscal year ends in September. USD in millions except per share data Assets Cash and cash equivalents Restricted cash Receivables Investments Property and equipment Deferred income taxes Goodwill Other intangible assets Other assets Total assets Liabilities and stockholders' equity Liabilities Short-term borrowing Payables and accrued expenses Taxes payable Long-term debt Deferred taxes Other liabilities Total liabilities Stockholders' equity Preferred stock Other Equity Additional paid-in capital 4945 3218 73 2263 75 3913 153 15882 4808 6367 31123 1749 3990 243 16618 5980 6637 35217 4145 3720 11156 4123 3933 10394 16630 4618 9026 35219 38 18299 83 18073 5717 -50 17395 5526 -36 16900 5470 60 16678 18299 9131 16900 9508 16678 11318 Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 18073 17395 11843 10462 -170 -157 -442 2984232912 40236 64035 -55 27413 38569 862 32760 67977 480 34006 69225 VISA INC CLASS A (V) CashFlowFlag INCOME STATEMENT Fiscal year ends in September. USD in millions except per share data 2014-09 2015-09 2016-09 2017-09 2018-09 12702 13880 15082 18358 20609 922 556 988 613 900872869 435 494 502 1877 1288 897 -690 2623 2263 2558 10079 11617 12524 1488 2966 15392 2198 3799 16810 Revenue Operating expenses Advertising and promotion Depreciation and amortization Nonrecurring expense Other expenses Total operating expenses Operating income Nonoperating income Interest expense Other income (expense) Total nonoperating income, net Income before taxes Provision for income taxes Other income (expense) Net income Preferred dividend Net income available to common shareholders 427 -69 27 27 -69 10106 2286 -2382 5438 11548 2667 -2553 6328 15 6313 -1321 -1748 10776 2021 -2764 5 991 62 5929 563 113 -450 14942 4995 -3248 6699 232 6467 612 464 -148 16662 2505 -3856 10301 17 359 5421 9942 Earnings per share Basic Diluted 2.16 2.15 2.58 2.58 2 2 .49 .48 2.8 2.8 4.43 4.42 Diluted 2.15 2.58 2.48 2.8 4.42 Neighted average shares outstanding Basic Diluted EBITDA 2500 2524 8132 2446 2457 9558 2386 2414 8941 23052239 2395 2329 12813 14031 - 1579 -1006 -1444 -6478 - 1177 318 -3603 -91 Dividend paid Other financing activities Net cash provided by (used for) financing activities Effect of exchange rate changes Net change in cash Cash at beginning of period Cash at end of period -1350 -145 7 477 -34 2101 3518 5619 -1918 -544 - 11240 -101 -1712 9874 8162 -215 2186 1971 -5924 236 4255 5619 9874 1547 1971 3518 Free Cash Flow Operating cash flow Capital expenditure Free cash flow 7205 -553 6652 6584 -414 6170 5574 -523 5051 9208 -707 8501 12713 -718 11995 Supplemental schedule of cash flow data Cash paid for income taxes Cash paid for interest 2656 2486 2842 244 3038 489 2285 545 For your initial post, you will calculate the current share price of Visa based upon the values from the accounting statements for 2018. V Financial Statements Final Project a You must include your calculations in your initial post. As reported in Morningstar (Park Library Database), Visa reported FCF of 11,995 (million) in 2018. To perform this calculati Cash Flow using the model from Chapter 9 (figure 9.21). You will project the next 11 years (2019-2029) to calculate the DCF. Use the calculated DCF and calculate the share price using formula 9.22. Use the following assumptions for this calculations: Assumptions for Calculations Assumptions FCF Annual Growth 22% Discount Rate 8.0% Shares outstanding 2231 Debt 16630 Cash 11709 In your responses to peers, critically evaluate the limitations with the DCF model and analyze another method of stock valuation which could be used with potential advantages or disadvantages. 2014-09 2015-09 2016-09 2017-09 2018-09 5619 1027 2740 3 977 2150 9874 1031 2554 1926 2253 8162 1491 2790 4082 2472 1971 1498 1699 3050 1892 1028 11753 11411 4267 38569 3518 1072 1332 3429 1888 871 11825 11361 4940 40236 15066 27234 6222 64035 15110 27848 7381 67977 15194 27558 7476 69225 VISA INC CLASS A (V) CashFlowFlag BALANCE SHEET Fiscal year ends in September. USD in millions except per share data Assets Cash and cash equivalents Restricted cash Receivables Investments Property and equipment Deferred income taxes Goodwill Other intangible assets Other assets Total assets Liabilities and stockholders' equity Liabilities Short-term borrowing Payables and accrued expenses Taxes payable Long-term debt Deferred taxes Other liabilities Total liabilities Stockholders' equity Preferred stock Other Equity Additional paid-in capital 4945 3218 73 2263 75 3913 153 15882 4808 6367 31123 1749 3990 243 16618 5980 6637 35217 4145 3720 11156 4123 3933 10394 16630 4618 9026 35219 38 18299 83 18073 5717 -50 17395 5526 -36 16900 5470 60 16678 18299 9131 16900 9508 16678 11318 Additional paid-in capital Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 18073 17395 11843 10462 -170 -157 -442 2984232912 40236 64035 -55 27413 38569 862 32760 67977 480 34006 69225 VISA INC CLASS A (V) CashFlowFlag INCOME STATEMENT Fiscal year ends in September. USD in millions except per share data 2014-09 2015-09 2016-09 2017-09 2018-09 12702 13880 15082 18358 20609 922 556 988 613 900872869 435 494 502 1877 1288 897 -690 2623 2263 2558 10079 11617 12524 1488 2966 15392 2198 3799 16810 Revenue Operating expenses Advertising and promotion Depreciation and amortization Nonrecurring expense Other expenses Total operating expenses Operating income Nonoperating income Interest expense Other income (expense) Total nonoperating income, net Income before taxes Provision for income taxes Other income (expense) Net income Preferred dividend Net income available to common shareholders 427 -69 27 27 -69 10106 2286 -2382 5438 11548 2667 -2553 6328 15 6313 -1321 -1748 10776 2021 -2764 5 991 62 5929 563 113 -450 14942 4995 -3248 6699 232 6467 612 464 -148 16662 2505 -3856 10301 17 359 5421 9942 Earnings per share Basic Diluted 2.16 2.15 2.58 2.58 2 2 .49 .48 2.8 2.8 4.43 4.42 Diluted 2.15 2.58 2.48 2.8 4.42 Neighted average shares outstanding Basic Diluted EBITDA 2500 2524 8132 2446 2457 9558 2386 2414 8941 23052239 2395 2329 12813 14031 - 1579 -1006 -1444 -6478 - 1177 318 -3603 -91 Dividend paid Other financing activities Net cash provided by (used for) financing activities Effect of exchange rate changes Net change in cash Cash at beginning of period Cash at end of period -1350 -145 7 477 -34 2101 3518 5619 -1918 -544 - 11240 -101 -1712 9874 8162 -215 2186 1971 -5924 236 4255 5619 9874 1547 1971 3518 Free Cash Flow Operating cash flow Capital expenditure Free cash flow 7205 -553 6652 6584 -414 6170 5574 -523 5051 9208 -707 8501 12713 -718 11995 Supplemental schedule of cash flow data Cash paid for income taxes Cash paid for interest 2656 2486 2842 244 3038 489 2285 545