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Memo

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Memo To: DELL STAKEHOLDERS From: Dell Technologies Date: 26th June 2019 Subject: DELL TECHNOLOGIES 1. Value of Equity The company’s value of the investment is equivalent to that of the stockholders’ equity. The computation for the investment is done by deducting the net value of liabilities from that of the total business assets. The below calculations are from Form 10k for Dell as per February 1, 2019. Millions Total Assets Total liabilities Book value of equity Book value of equity 109892 109779 Assets less Total liabilities 113 The information on the business’ assets and liabilities is located on Dell 10-K for February 1, 2019 (pg. 57) on http://www.sec.gov site. Dell 10-Q filling as at May 3, 2019, is as below: Millions Total Assets Total liabilities Equity Book Value 111820 111566 Assets less Total liabilities Book value of equity 254 Therefore, the corporation’s book value of the investment as of May 3, 2019, is $254 million. Within the balance sheet for Dell 10-k dated February 1, 2019, the book cost of Debt equals $109779 m, whereas on October 28, 2011, 10-Q value is $111566m. The long term debt from the balance sheet dated February 1, 2019, 10-k was $49201m, whereas on May 3, 2019, 10-Q was $48640m. 2. Estimating yield and cost of capital using CAPM I gathered different information from February 2019 to enable me to calculate the Capital Asset Pricing Module. The information below was useful for my calculation; Treasury bills yield for 3 months =4% (fi ...
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