Question
I am going to do presentation about Sears and JCPennery. I need some information of these companies. 2. For each company, graphically trend the net
I am going to do presentation about Sears and JCPennery. I need some information of these companies.
2. For each company, graphically trend the net income and cash flow from operations over the last five years. Based on a comparison of the income statement to the statement of cash flows, what accounts explain the greatest differences between net income (loss) and cash flow from operations. Comment on the quality of the earnings numbers.
3. Calculate and interpret the net present value (NPV) of the companies' annual free cash flow (FCF) for a 5 year period (nper) taking into account a constant growth rate (which will need to be calculated), and a discount rate that is equal to your companies weighted average cost of capital (WACC), which is 7%
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