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Milestone Four: Interest Rate Implication (Fill in yellow cells) Lowe's Companies Inc. (Stock Ticker: LOW) - (NAICS Code: 444110) 1. Original Scenario From Milestone
Milestone Four: Interest Rate Implication (Fill in yellow cells) Lowe's Companies Inc. (Stock Ticker: LOW) - (NAICS Code: 444110) 1. Original Scenario From Milestone 1-Time Value of Money Using 8% Current Market Interest Rate at 8% Interest Rate Years Amounts* Pv* 8.00% Most Recent Year-End 2022 2021 2020 $ $ $ $ $ $ Total Pv* *In millions $ 2. Change in Interest Rate and Its Implications Lower Current Market Interest Rate to 4% Interest Rate Years Amounts* Pv* 4.00% $ $ $ $ $ Total Pv* $ *In millions Instructions and Explanations We will use your selected company's free cash flows for Milestone Four analysis. (Note that the initial interest rate and rate changes for this Milestone are different than those used in Milestone One.) Three scenarios will be analyzed: 1. Current Market Interest Rate at 8% 2. Lower Current Market Interest Rate to 4% 3. Increase Current market Interest Rate to 12% Once you have completed these calculations, proceed to write your written analysis. 3. Change in Interest Rate and Its Implications 3. Increase Current market Interest Rate to 12% Interest Rate Years Amounts* 12.00% Pv* $ $ $ $ $ Total Pv* $ *In millions
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