Finance question

(a)Estimate the value of a share of Cisco common stock (common shares outstanding is 5,029 million) using the discounted cash flow (DCF model). (Please use the parsimonious forecast method in our class excel example)

(b)Estimate the value of a share of the company using the ROPI model.

(c)Cisco stock closed at $31.47 on September 8 2016, which is the 10K-filing date. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference? What investment decision is suggested from your results?

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