# Analysis

Submitted By monica1108
Words 419
Pages 2
Forecasting and Valuation Analysis
Our group is going to use Discounted Discount Method to calculate the value of per share about Medtronic, and we assume that the terminal year is the 6th year.
Assumptions
According to the 10-K, we can easily get the basic information (shown in the form below), and by using the function of equity value equal to dividend divide require cost of equity(r) minus growth rate and the assumption of the constant growth rate, we can calculate the growth rate to be 15.17%.And we also assume the number of shares outstanding to be constant in the next 6 years.
| |2012 |2011 |2010 |
|Number of shares outstanding |1053.9 |1077.4 |1106.3 |
|Dividend to shareholders | \$1,021.00 | \$969.00 | \$907.00 |
|EPS | \$3.43 | \$2.87 | \$2.80 |
| ROE |21.14% |19.39% |21.18% |
|DPS | \$0.97 | \$0.90 | \$0.82 |
|Net earing | \$3,617.00 | \$3,096.00 | \$3,099.00 |
|Total equity | \$17,113.00 | \$15,968.00 | \$14,629.00 |
|Require cost of equity [r] |21.14% | | |
|Industry require cost of equity |7.39% | |…...

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