Question Details

(Solved) I just need to know all the steps you took to come up with the


I just need to know all the steps you took to come up with the capital expenditure and cash flows from operations. and to get the price per share based on the valuation and the steps taken to do that. it should not take long and if you could please use 9% WACC and 5% growth rate 

thank you.


Statement Of Financial Position Classified (USD $)

 

In Millions

 


 

2014

 


 

Current assets:

 

Cash and cash equivalents

 


 

$7,495

 


 

Short-term investments

 


 

1,641

 


 

Accounts receivable, net

 


 

4,252

 


 

Assets under management

 


 

2,962

 


 

Deferred income taxes

 

Prepaid expenses and other current assets

 


 

556

 

1,052

 


 

Total current assets

 


 

23,556

 


 

Long-term investments

 


 

18,827

 


 

Property, equipment and capitalized software, net

 

Goodwill

 


 

4,418

 

32,940

 


 

Other intangible assets, net

 


 

3,669

 


 

Other assets

 


 

2,972

 


 

Total assets

 


 

86,382

 


 

Current liabilities:

 

Medical costs payable

 


 

12,040

 


 

Accounts payable and accrued liabilities

 


 

9,247

 


 

Other policy liabilities

 


 

5,965

 


 

Commercial paper and current maturities of long-term debt

 


 

1,399

 


 

Unearned revenues

 


 

1,972

 


 

Total current liabilities

 


 

30,623

 


 

Long-term debt, less current maturities

 


 

16,007

 


 

Future policy benefits

 


 

2,488

 


 

Deferred income taxes and other liabilities

 


 

2,065

 


 

Total liabilities

 

Shareholders' equity:

 

Preferred stock, $0.001 par value - 10 shares authorized; no shares

 

issued or outstanding

 

Common stock, $0.01 par value - 3,000 shares authorized; 1,153 and

 

1,201 issued and outstanding

 


 

35,035

 

52540

 

0

 

10

 


 

Additional paid-in capital

 

Retained earnings

 


 

33,836

 


 

Accumulated other comprehensive income (loss):

 

Net unrealized gains (losses) on investments, net of tax effects

 


 

(1,392)

 


 

Foreign currency translation losses

 

Total shareholders' equity

 

Total liabilities and shareholders' equity

 


 

32,454

 

$86,382

 


 

2016

 


 

2015

 


 

2017

 


 

2018

 


 

2019

 


 

2020

 


 

$10,923 12015.3 13216.8 14538.5 15992.4 17591.6

 

1,988

 

6,523

 

2,998

 

860

 

1,546

 


 

2186.8

 

7175.3

 

3297.8

 

946

 

1700.6

 


 

2405.48

 

7892.83

 

3627.58

 

1040.6

 

1870.66

 


 

2646.03

 

8682.11

 

3990.34

 

1144.66

 

2057.73

 


 

2910.63

 

9550.32

 

4389.37

 

1259.13

 

2263.5

 


 

3201.69

 

10505.4

 

4828.31

 

1385.04

 

2489.85

 


 

31,639 34802.9 38283.2 42111.5 46322.7 50954.9

 

18,792 20671.2 22738.3 25012.2 27513.4 30264.7

 


 

5347.1

 

44,453 48898.3

 

8,391 9230.1

 

3,247 3571.7

 

4,861

 


 

5881.81

 

53788.1

 

10153.1

 

3928.87

 


 

6469.99

 

59166.9

 

11168.4

 

4321.76

 


 

7116.99 7828.69

 

65083.6

 

71592

 

12285.3 13513.8

 

4753.93 5229.33

 


 

111,383 122521 134773 148251 163076 179383

 

14,330

 

11,994

 

7,798

 

6,634

 

2,142

 


 

15763

 

13193.4

 

8577.8

 

7297.4

 

2356.2

 


 

17339.3 19073.2 20980.6 23078.6

 

14512.7

 

15964 17560.4 19316.5

 

9435.58 10379.1 11417.1 12558.8

 

8027.14 8829.85 9712.84 10684.1

 

2591.82

 

2851 3136.1 3449.71

 


 

42,898 47187.8 51906.6 57097.2

 

25,460

 

2,496

 

3,587

 


 

62807 69087.7

 

28006 30806.6 33887.3

 

37276 41003.6

 

2745.6 3020.16 3322.18 3654.39 4019.83

 

3945.7 4340.27 4774.3 5251.73 5776.9

 


 

34,551 38006.1 41806.7 45987.4 50586.1 55644.7

 

75922 83514.2 91865.6 101052 111157 122273

 

0

 


 

0

 


 

0

 


 

0

 


 

0

 


 

0

 


 

11

 

12.1

 

13.31 14.641 16.1051

 

31.9

 

35.09 38.599 42.4589 46.7048

 

29

 

37,125 40837.5 44921.3 49413.4 54354.7 59790.2

 

10

 


 

0

 

0

 

0

 

0

 

0

 

(3,334) -3667.4 -4034.14 -4437.55 -4881.31 -5369.44

 

-115.5 -127.05 -139.755 -153.731 -169.104

 

(105)

 

33,725 37097.5 40807.3

 


 

44888 49376.8 54314.4

 


 

$111,383 122521 134773 148251 163076 179383

 


 

Statement Of Income Alternative (USD $)

 

In Millions, except Per Share data

 


 

2015

 


 

2014

 


 

2016

 


 

2017

 


 

Revenues:

 

Premiums

 


 

$127,163 $115,302 $139,879 153867

 


 

Services

 


 

17,312

 


 

4,242

 


 

19,043 20947.5

 


 

Products

 


 

11,922

 


 

10,151

 


 

13,114 14425.6

 


 

710

 


 

779

 


 

157,107

 


 

130,474

 


 

172,818 190099

 


 

103,875

 


 

93,633

 


 

114,263 125689

 


 

Operating costs

 


 

24,312

 


 

21,263

 


 

26,743 29417.5

 


 

Cost of products sold

 


 

16,206

 


 

3,826

 


 

17,827 19609.3

 


 

1,693

 


 

1,478

 


 

1,862 2048.53

 


 

146,086

 


 

120,200

 


 

160,695 176764

 


 

11,021

 


 

10,274

 


 

12,123 13335.4

 


 

(790)

 


 

(618)

 


 

Earnings before income taxes

 


 

10,231

 


 

9,656

 


 

11,254 12379.5

 


 

Provision for income taxes

 


 

(4,363)

 


 

(4,037)

 


 

(4,799) -5279.23

 


 

Net earnings

 


 

$5,868

 


 

$5,619

 


 

6,455 7100.28

 


 

$6.1

 


 

$5.78

 


 

6.71

 


 

$6.01

 


 

$5.7

 


 

6.61

 


 

Investment and other income

 

Total revenues

 


 

781

 


 

859.1

 


 

Operating costs:

 

Medical costs

 


 

Depreciation and amortization

 

Total operating costs

 

Earnings from operations

 

Interest expense

 


 

Basic net earnings per common share

 

Diluted net earnings per common share

 


 

(869)

 


 

-955.9

 


 

7.38

 

7.27

 


 

2018

 


 

2019

 


 

2020

 


 

169254 186179 204797

 

23042.3 25346.5 27881.1

 

15868.2

 

17455 19200.5

 

945.01 1039.51 1143.46

 

209109 230020 253022

 

138258

 

32359.3

 

21570.2

 

2253.38

 


 

152083

 

35595.2

 

23727.2

 

2478.72

 


 

167292

 

39154.7

 

26099.9

 

2726.59

 


 

194440 213885 235273

 

14669 16135.8 17749.4

 

-1051.49 -1156.64 -1272.3

 

13617.5 14979.2 16477.1

 

-5807.15 -6387.87 -7026.66

 

7810.31 8591.34 9450.47

 

8.12

 

8.93

 

9.82

 

8.00

 

8.80

 

9.68

 


 

Year

 

Cash flow from operations

 

Less: Capital expenditure

 

Less: Dividends

 


 

2014

 

8051

 

1525

 

1362

 


 

2015

 

9740

 

1556

 

1786

 


 

2016

 

10414

 

1600

 

1965

 


 

2017

 

11456

 

1625

 

2161

 


 

2018

 

12601

 

1630

 

2377

 


 

Free cash flows

 


 

5164

 


 

6398

 


 

6850

 


 

7670

 


 

8594

 


 

Assuming the cost fo capital

 

growth rate

 


 

15%

 

10%

 


 

Calculating the value of the firm

 

Present value of the cash flo

 

30094

 

Terminal value

 

213524

 

Value of the firm

 


 

243618

 


 

2019

 

13861

 

1635

 

2615

 


 

2020

 

15248

 

1695

 

2876

 


 

9612

 


 

10676

 


 

 


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DATE ANSWERED

Oct 15, 2019

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