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-You're a financial advisor and one of your clients comes to you for advice. He wants to invest in company XYZ. What would be your first steps in

-You're a financial advisor and one of your clients comes to you for advice. He wants

to invest in company XYZ. What would be your first steps in order to help your

client?


-After taking those required steps you investigate the financial data, finding out that

the current stock price is $180.00.

- The company has grown at an average of 3% for

the past 10 years.

-The current rate of inflation is 2% and the current 30-year bond

yield 9risk free rate) is 2%.

-The most recent information from the 2017 statement of

cash flows, indicates a $1.5 billion in capital expenditures, $4.8 billion in cash from

operating activities and $990 million from investing activities, $300 Million in

Dividends and there are 650 million shares outstanding.

- Using the DCF valuation method, produce an excel sheet, what would you recommend to your client and why?

-Is it worth investing?

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