1. Using Discounted Cash Flow (DCF) analysis, estimate the enterprise value AND implied equity value of American Greetings at the beginning of 2012. a. Model the cash flows for fiscal years 2012 through 2015 based on the two scenarios presented in the table. If you made assumptions in addition to the ones presented in the table , please explain. b. Estimate the WACC of American Greetings based on information c. Explain your terminal value assumptions under both scenarios. What is your terminal value estimate under both scenarios? d. What is the implied enterprise value of American Greetings and the corresponding share price? 2. What do you think is the intrinsic value of American Greetings shares? Do you recommend repurchasing the shares? Please explain. Actual Forcasted Bullish Scenario 2011 2012 2013 2014 2015 Revenuw Growth 5.3% 1.0% 1.5% 2.0% 2.5% Operating Margin 9.4% 9.0% 9.0% 9.0% 9.0% Net Working Capital Turnove 5.02 6.00 6.50 7.00 7.50 Fixed Asse Turnover 1.95 1.95 1.95 1.95 1.95 Bearish Scenario 2011 2012 2013 2014 2015 Revenuw Growth 5.3% 0.0% 0.0% 0.0% 0.0% Operating Margin 9.4% 8.0% 7.0% 6.0% 5.0% Net Working Capital Turnove 5.02 6.00 6.50 7.00 7.50 Fixed Asse Turnover 1.95 1.95 1.95 1.95 1.95 American Greetings Income Statement, Dec 2011 Balance Sheet Total Revenue 1,677 Cash/Cash Equivalent 172 Debth Due in one year 0 Costs 743 Acccount Receivable 130 Accounts Payable 87 SDMarketing Expenses 526 Inventories 190 Other Current Liabilities 255 General Expenses 258 Prepaid Expenses 131 Goowill/Intangable Ass 0 Other Current Assets 54 Operating Expenses 0 Current Liabilities 343 Total Current Assets 677 Operating Income 157 Other Assets/Plants 859 Long-Term Debt 235 Net Int & Op Expenses 28 Othr Liabilities 206 EBIT 129 Sharholder's Equity 752 Income Tax Expense 47 Total Assets 1,538 Total L&E 1,536 Net Income 82

Please explain in details with excell functions

Tax rate 39%

10 year treasury bond 2.8%

debt ratio for wacc 5.8%

beta 1.63

market risk premium 5%

debt 235$

equity 479.13$

price of the share 12.51

thanks