Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: cfimx who wrote (18225)	12/22/2003 8:59:18 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78478

>>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... So please tell me, where in the above I did not account for the cash? Jurgis