rjr nabisco example essay

Category: Finance,
Words: 526 | Published: 03.30.20 | Views: 558 | Download now


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Exec Summary

The RJR Nabisco case study was used to implement concepts that I have learned in the lecture during the semester and put it to the real world. The Nabisco case allowed me to develop my abilities by using an Excel Worksheet, understanding how to calculate the reasonable value value per discuss, and deciding the reasonable value selling price per share by changing the taxes rate and growth level.

First, I used to be expected to develop an Stand out Worksheet. Using the given data and analyzing the case, I had been able to find each of the fixed parameters needed inside the Excel Worksheet.

Using these kinds of fixed variables, I was capable to use my own prior expertise in Exceed to construct equations to find the dependent variables, such as the fair worth price every share.

This case also allowed me to develop my personal skills in calculating the fair benefit price per share. Making use of the different parameters given in this case, I was capable of use equations to find the best approximate for the fair value price every share of RJR Nabisco.

The third profit I received from this job was the way the tax level and progress rate damaged the good value cost per discuss. Using the past data and the reusable Stand out Sheet, I used to be able to find all of the changes in the reasonable value value per share due to changes in the tax and growth charge.

Overall, the RJR Nabisco case helped me develop my personal skills in using Surpass Worksheets. It also let me apply what I have learned in class about calculating the fair worth price per share, and allowed myself to experience it in a more reasonable setting. I used to be also capable of see how changes in the tax charge and progress rate affect the fair worth price every share.

1 . Build a “reusable Excel bed sheet that computes the reasonable value every share making use of the information succumbed the case. Consider that the Excel linen can carefully approximate the value per talk about given in the situation (~$108).

I was able to create an Surpass Worksheet (see page 5) that could use the data given in the RJR Nabisco Case Study. I used to be able to help to make it applying different factors that would permit me to change the tax rate andgrowth rate to obtain the next two answers.

2 . In your Surpass sheet, replace the input cell for tax rate to 15%. What is the new fair value per share?

By simply changing the tax price to 15%, it triggers the price per share to improve to $123. 19

3. Change the duty rate back to 34% and this time replace the perpetual expansion rate to 5%. What is the new good value every share?

Simply by changing the tax level back to 34% and moving the growth price up to five per cent, it triggers the price per share to increase to $125. 14.


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