Finance project about Amerisource Bergen Corporation and Abbott Laboratories

May 2016 | 14 pages | ID: FA160A7BF62EN
Sadia Saeed

Abstracts

This is detailed report about two compnaies that explains intrinsic values, WACC, growth rates of dividends, CAPM model, cost of capital and weighted average cost of capital

Contents

Dividend Growth Rate
Abbott Laboratories
Annual Growth Rate
Calculations
##2013
##2012
AmerisourceBergen Corporation
Annual Growth Rate
Calculations
##2013
##2012
Explanation
The CAPM formula (Risk free rate is7% - the average T bill rate over the last five years)
r = RF + β [E (RM) – RF]
Explanation
The stock’s intrinsic value
Abbott Laboratories
Intrinsic Value
Current Value:
American Bergen Corporation
Intrinsic value
Current value
Explanation
Weighted Average Cost of Capital (WACC)
The book value of debt and equity
Abbott Laboratories
2013
Book Value of Equity
Book value of Debt
2012
Book Value of Equity
The weights of debt and equity
Abbott Laboratories
Weights of Debt and equity
American Bergen Corporation
Weights of Debt and Equity
Weight of equity
Weight of debt
The cost of capital
Abbott Laboratories
Cost of Capital
American Bergen Corporation
##2013
##2012
Cost of Debt
##2013
##2012
The weighted average cost of capital (The tax rate is 35%)
Abbott Laboratories
##2012
##2013
American Bergen Corporation
##2012
##2013
Explanation
5- Final Report
References
National Bank of Kuwait