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4.2 Discuss how you would approach a sensitivity analysis on the valuation of Steel Co. by answering the following questions 4.2.1 Identify the key parameters

4.2 Discuss how you would approach a sensitivity analysis on the valuation of Steel Co. by answering the following questions

4.2.1 Identify the key parameters and assumptions that affect your DCF valuation of Steel Co.

4.2.2 How will the following change the valuation (increase or decrease in the calculated value of Steel Co.)?

An increase in the exchange rate (effect on exports and imports).

A decrease in the demand for steel due to an economic downturn.

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