RJR Nabisco Case Study Essay Example for Free

RJR Nabisco sideslip Study EssayExecutive SummaryThe RJR Nabisco case study was used to implement concepts that I have learned in class during the semester and apply it to the real world. The Nabisco case allowed me to relegate my skills by using an outgo Worksheet, understanding how to calculate the reasonable harbor price per share, and determining the fair look upon price per share by changing the tax roll and growth rate.First, I was expected to construct an Excel Worksheet. Using the given data and analyzing the case, I was suitable to find all of the fixed variables needed in the Excel Worksheet. Using these fixed variables, I was able to use my prior skills in Excel to construct equations to find the dependent variables, such as the fair grade price per share.This case also helped me develop my skills in calculating the fair value price per share. Using the different variables given in this case, I was able to use equations to find the best compute for the fair value price per share of RJR Nabisco.The third benefit I gained from this assignment was how the tax rate and growth rate affected the fair value price per share. Using the previous data and the reusable Excel Sheet, I was able to find the changes in the fair value price per share imputable to changes in the tax and growth rate.Overall, the RJR Nabisco case helped me develop my skills in using Excel Worksheets. It also let me apply what I have learned in class about calculating the fair value price per share, and allowed me to experience it in a more realistic setting. I was also able to take hold of how changes in the tax rate and growth rate affect the fair value price per share.1. Construct a reusable Excel sheet that computes the fair value per share using the information given in the case. Please make sure that your Excel sheet can closely approximate the value per share given in the case ($108).I was able to construct an Excel Worksheet (see page 5) that was able to use the i nformation given in the RJR Nabisco Case Study. I was able to make it using different variables that would allow me to change the tax rate andgrowth rate to get the next two answers.2. In your Excel sheet, change the input cell for tax rate to 15%. What is the new fair value per share?By changing the tax rate to 15%, it causes the price per share to increase to $123.193. Change the tax rate back to 34% and this time change the perpetual growth rate to 5%. What is the new fair value per share?By changing the tax rate back to 34% and moving the growth rate up to 5%, it causes the price per share to increase to $125.14.