Calculate an estimate of the FCF for the two forecasted years 2014 and 2015 from Exhibit 7. (Type out the formula (i.e. FCF2014 = XXX+XXX+XXX and then state where you got the values for each component). Then calculate your estimate of the WACC for Whole Foods. (Similarly type out your formula WACC = XXX*(XXX)+XXX*(XXX) and support each piece of the calculation).

311 P24 B D E H F G 1 Exhibit 7 2 WHOLE FOODS MARKET 3 Deutsche Bank Model (millions of USD, except per share figures) 4 Actual 5 Actual Actual Forecast Forecast 6 At Fiscal Year End 2011 2012 2013 2014 2015 7 Store Growth 4.0% 7.7% 8.1% 10.5% 12.6% 8 Sales Growth 12.2% 15.7% 10.4% 11.1% 14.0% 9 EBITDA Margin 8.5% 9.0% 9.5% 9.4% 9.8% 10 Tax Rate 38.1% 38.4% 38.8% 39.0% 39.0% 11 12 Current Asset Turnover 7.0 5.6 6.5 7.0 7.1 13 Current Liabilities Turnover 10.5 10.9 10.7 10.5 10.5 14 Net PP&E / Store 6.4 6.5 6.7 6.7 6.7 15 Annual Dep. & Amort. / Store 1.00 0.93 0.94 0.94 0.94 16 17 Stores 335 362 400 450 18 Sales 10,108 11,699 12,917 14,351 16,360 19 EBITDA 859 1,055 1,222 1,352 1,600 20 Dep. & Amort. 311 311 339 376 423 21 EBIT 548 744 883 976 1,176 22 Taxes 209 286 343 381 459 23 Net Income 339 458 540 596 717 24 Shares Outstanding 350 364 372 372 372 25 Earnings per Share 0.97 1.26 1.45 1.60 1.93 26 27 Current Assets 1,453 2,103 1,980 2,050 2,304 28 Current Liabilities 880 977 1,088 1.238 1.406 29 Net Working Capital 573 1,126 892 812 898 30 Net PP&E 1,997 2,193 2,428 2,680 3,018 31 32 Return on Capital 13.2% 13.8% 16.3% 17.1% 18.3% 33 34 Source: Company Financial Reports, Deutsche Bank Analyst report and casewriter estimates 35 36 37 Exh 1 Exh 2 Exh 3 Exh 4 Exh 5 Exh 6 Exh 7 Ready Title Page