1.) Widget Inc. is expected to have the following free cash flows:

Year 1 2 3 4 5 FCF 22 27 32 36 38 ($ Millions)______________________________________

After then, the free cash flows are expected to grow at the industry average of 5% per year. Using the discounted free cash flow model and the weighted average cost of capital of 10%:

a. Estimate Widget Inc. enterprise value

b. If Widget Inc. has 10 million in cash, 3 million in debt, and 10 million shares outstanding what is their estimated share price?

2.) Go to one of the following sites: Yahoos finance section, Morningstar.com, MSN.money.com, Hoovers.com. You might even use the firms 10K. If find an easy place to start is with Morningstar.com under the bonds section. Calculate three (3) publically traded companies WACC. Remember this is just an exercise. You will be graded on the process and not the answer. Show all work. Also, if you chose use the WACC excel calculator.

3.) Go to one of the following sites: Yahoos finance section, Morningstar.com, MSN.money.com, Hoovers.com. You might even use the firms 10K. Calculate three (3) publically traded companies most recent FCFs. I know Morningstar.com and Hoovers.com (Sullivan Library) give the answer; however, I will grade on the process and not the answer. You might check your answer with one of these sites.