Attempt to construct a DCF for CFA Case Company (Elanco). Do so by:

1) Calculating WACC

2) Making a 10-year forecast for cash flow following the format below

Sales

-COGS

-OPEX

-D&A

=OEBT

- Effective Tax

=OEAT

+ D&A

=CF......years 1......10

3) Computing a Terminal Value (year 11)

Use the following formula

(CF10 x (1+ LT Growth Rate)) / (WACC - LT Growth rate)

THEN.....Compare to Equity Value (MC).

HINT: Do in Excel, Import tables into Word. Show work for each Question