Sprint

Stock Valuation; Historical Stock Price

Five Year Economic Forecast

Net Profit

Margin:

Rs = 2.5 + 1.11(7.5-2.5) = 2.5 + 5.55 = 8.05

Rps = 0

Rd = 2.67% (1-.40) = 2.67% (.6) = 1.602

WACC = .45(8.05) + 0 + .55(1.602) = 3.6225 + 0 + .8811 = 4.50%

Debt to Equity:

Quick Ratio:

• 22.85 below the industry Avg.
• Recuperating loss of -29.7k in 2007

Price Earning Ratio

• Risky.
• Cash flows are insufficient to cover interest and principal payments.

Currently the company is in a quite good position compare with the industry. This means that the company currently can pay back its current liabilities

WACC:

• 18.91 below industry average
• Company is on Hold status
• Not recommended to buy or sell stocks

• Cost of debt is low
• Zero preferred Stock
• Raise debt or borrow money at lower interest rate.

Return on Assets

At this moment the company is cannot derive any dollar from their current assets that they control.

Key Financial Metrics

Agenda:

Introduction:

Current Ratio:

• Better position than the industry.
• Bad position for a short term loan.
• Comparison rate needs to = 2 to 1

• Introduction
• Key Financial Analysis
• Stock Valuation
• Five Year Economic Forecast
• Conclusion
• Refernces

Industry: Telecommunications

Traded as NYSE:S

Areas Served: United States, Puerto Rico and US. Virgin Islands

Services: Wireless Communication, internet access and long distance.

Return on Equity:

• 52.6 below industry avg.
• Not investing dollars well to generate profits

Conclsion: