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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: daryll40 who wrote (40434)12/4/2000 6:25:22 PM
From: Chien Li  Read Replies (1) | Respond to of 70976
 
From discounted free cash flow analysis, using factors that include interest rate, beta, EBIT, growth rate, tax (35%), debt, working capital change, and several other factors, you can calculate the value of the firm. For AMAT with an assumed growth rate of 16% that gradually decreases to 10% in year 10, with a long-term bond rate of 5.8% (the corresponding cost of capital is 18.1%), the firm value would be $29.6/share.



To: daryll40 who wrote (40434)12/4/2000 6:45:19 PM
From: Jacob Snyder  Respond to of 70976
 
Sorry. I guess I wasn't clear. I do not (that's NOT!) think predicting interest rates is easy. I just think it is possible to find consistent patterns in the historical record, make a set of rules, and then use those rules to predict the future, and have a better chance of success than a coin-toss.

I was just making the point that people decide some questions (like Y2K before 1/1/00) emotionally, and therefore it is useless to try to apply logic to those questions.


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