Based on the financial statements provided in SU_MBA6010_Final_Project_Information.xls in the Doc Sharing area, use the dividend growth model to calculate the intrinsic value of MNQ Company’s common stock in 2008.
Analyze how the U.S. Constitution implements separation of powers and checks and balance
August 7, 2017leader as either transformational or transactional
August 7, 2017Based on the financial statements provided in SU_MBA6010_Final_Project_Information.xls in the Doc Sharing area, use the dividend growth model to calculate the intrinsic value of MNQ Company’s common stock in 2008.
Based on the financial statements provided in SU_MBA6010_Final_Project_Information.xls in the Doc Sharing area, use the dividend growth model to calculate the intrinsic value of MNQ Company’s common stock in 2008.
Determine whether the stock is undervalued, overvalued, or fully valued. Justify the assumptions that you make.
Submit your answers in a 5- to 7-page Microsoft Word document and your calculations in a Microsoft Excel sheet.
Attachments
| MNQ Company | |||||||||||||||||||
| Balance Sheet ($000) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
| Assets | |||||||||||||||||||
| Current Assets | |||||||||||||||||||
| Cash and cash equivalents | $250 | $225 | $191 | $160 | $192 | ||||||||||||||
| Accounts receivable | $650 | $585 | $497 | $425 | $510 | ||||||||||||||
| Inventories | $300 | $270 | $230 | $200 | $240 | ||||||||||||||
| Total Current Assets | $1,200 | $1,080 | $918 | $785 | $942 | ||||||||||||||
| Fixed Assets | |||||||||||||||||||
| Property, plant, and equipment | $2,200 | $1,870 | $1,814 | $1,422 | $1,400 | ||||||||||||||
| Less: Accumulated depreciation | $400 | $200 | $180 | $80 | $75 | ||||||||||||||
| Net property, plant, and equipment | $1,800 | $1,670 | $1,634 | $1,342 | $1,325 | ||||||||||||||
| Intangible assets | $300 | $240 | $220 | $210 | $205 | ||||||||||||||
| Total Fixed Assets | $2,100 | $1,910 | $1,854 | $1,552 | $1,530 | ||||||||||||||
| Total Assets | $3,300 | $2,990 | $2,772 | $2,337 | $2,472 | ||||||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
| Current Liabilities | |||||||||||||||||||
| Accounts payable | $400 | $340 | $299 | $245 | $319 | ||||||||||||||
| Notes payable | $300 | $255 | $224 | $184 | $239 | ||||||||||||||
| Accrued expenses | $600 | $510 | $449 | $368 | $478 | ||||||||||||||
| Total Current Liabilities | $1,300 | $1,105 | $972 | $797 | $1,037 | ||||||||||||||
| Long-Term Liabilities | |||||||||||||||||||
| Long-term debt | $400 | $380 | $370 | $350 | $345 | ||||||||||||||
| Deferred taxes | $250 | $230 | $220 | $210 | $205 | ||||||||||||||
| Total Long-Term Liabilities | $650 | $610 | $590 | $560 | $550 | ||||||||||||||
| Total Liabilities | $1,950 | $1,715 | $1,562 | $1,357 | $1,587 | ||||||||||||||
| Stockholders’ Equity | |||||||||||||||||||
| Common stock | $100 | $100 | $100 | $100 | $100 | ||||||||||||||
| Capital surplus | $450 | $420 | $410 | $380 | $370 | ||||||||||||||
| Retained earnings | $800 | $755 | $700 | $500 | $415 | ||||||||||||||
| Total Stockholders’ Equity | $1,350 | $1,275 | $1,210 | $980 | $885 | ||||||||||||||
| Total Liabilities and Stockholders’ Equity | $3,300 | $2,990 | $2,772 | $2,337 | $2,472 | ||||||||||||||
