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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (18212)	12/22/2003 1:28:47 AM
From: cfimx	Read Replies (1) \| Respond to of 78476

>>OK, I played with numbers a bit. If we subtract 40B cash from equity, we have ~27B adjusted equity. Then ROadjustedE is ~35%. If you assume that MSFT can continue ROadjustedE of 35% on the 27B adjusted equity, then you would have a good annual 20% annual return. I would be more conservative and assume only 25% adjusted ROE going forward. Which still puts MSFT in the "hold" area with ~9% expected annual return.>> you must account for the cash...it either gets paid out, used for a buy back, or for accretive acquisitions...that MUST go into your calc of shareholder returns...