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1.What is an appropriate long-term growth rate? Briefly explain. 2. Should I use the perpetuity growth method or enterprise value multiple to calculate the Terminal

1.What is an appropriate long-term growth rate? Briefly explain.

2. Should I use the perpetuity growth method or enterprise value multiple to calculate the Terminal Value in my DCF? Provide a brief defense.

3. Why is the DCF so sensitive to the discount rate?

4. Why do we use WACC to calculate a discount rate?

5. Why use a DCF, comparable transactions and trading comparables? When are the pitfalls / advantages of each?

6. What is your recommendation? Should the team purchase 4 million shares of IPI trading at $18.98 on 6/15/13? Why or why not?

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