In 1998, Google, Inc., was a small research project at Stanford University. Later that year it became a tiny start-up company. The number of people who use Google's services every day is now in the hundreds of millions. Using the instructions below, access Google's 2008 Annual Report, and discuss these questions:
2. Read Management's Discussion and Analysis of Results of Operations and Financial Condition and explain managements view of Google's current and future lease position.
•Go to the Securities and Exchange Commission (SEC) home page.
•Select the "Search Edgar for Company Filings" button
•Enter Google in the Company Name field. You do not need to enter any other information into any other field.
•Scroll down and click the Find Companies button.
•Click CIK 0001288776 Google Inc. This will generate a complete list of Google's filings with the SEC.
•Scroll down until you find the Annual Report to Security Holders with a filing date of 2012-05-10. This is Google's 2011 Annual Report.
•Click the Documents button for this item. To display the annual report, select the Scanned paper document by clicking scanned.pdf.
Your tutorial is 186 words plus two pages from the 2011 10-K showing the actual comments about leases for Google. The 2011 Google 10K is attached as a reference.© BrainMass Inc. brainmass.com October 25, 2018, 8:19 am ad1c9bdddf
See attached for portions of the 10k report used.
1. Are there any lease transactions reported on the Statement of Cash Flows? If so, how?
No, there are no lease transactions reported on separate lines where they can be inspected and seen as separate from other (non-lease) operating, investing or financing activities (see cash ...
Your tutorial is 186 words plus two pages from the 2011 10-K showing the actual comments about leases for Google. The 2011 Google 10K is attached as a reference.
Valuation of Yahoo! Inc.
This question requires you, among other things, to calculate the stock price for Yahoo! Inc. (YHOO); and provide the needed analysis as asked in what follows. Here is what you need to do for this question. Obtain the latest financial info/statements for Yahoo! Inc. (ticker YHOO), also identify its peer companies and obtain pricing and financial information for them. After that answer the following questions:
A. Develop a DCF model using excel to estimate the fair value of the firm's common shares (use the data at yahoo.com/finance for your baseline year (2012). Don't forget to include the terminal value (value after the forecast period, defined as 2013-2020) in your estimate.
B. For each of the value drivers (i.e., sales growth and profit margin over the forecast period, tax rate, WACC, fixed and working capital investment rates, WACC), identify your sources and assumptions, and show any calculations. This is especially important for the WACC you will use to calculate the NPV, due to the sensitivity of your results to this critical parameter.
C. Using comparable ratios of peer companies, estimate the company's stock price using relative valuation method. List the major assumptions and sources of information that you used in your calculations. How do you know your assumptions are reasonable enough? Explain.
D. How do your DCF and relative valuations compare with the company's prevailing market price? If they are different, can you briefly forward any possible explanations? If they are not different, can you still justify the price that you arrived at?
E. On February 1, 2008 Microsoft announced "that it has made a proposal to the Yahoo! Inc. Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion." What was the outcome of this bid? Specifically, how did the management and the board react? How did this bid affect the company's strategy and management? If a potential acquirer were interested in Yahoo today, what would your recommendation be on a per share basis? Is a premium justified?
Make sure to justify your responses by using the available data/info and carrying out any needed and relevant calculations.