Calculate and Complete the followng DCF Model

WACC Calculation
Asset beta		0.82
Risk-free rate		4.86%
Market Risk Premium	5.00%
Cost of debt		6.00%
Target Debt Ratio	35%
Re-levered equity beta
Cost of equity
WACC

				<=History	Pro Forma =>
Operating Forecasts	2010	2011	2012	2013	2014	2015	2016	2017	Pro forma assumptions
US Sales		330	328	330						0.5%	annual growth
International Sales	29	32	36						13.0%	annual growth
Net Sales		359	360	366
Cost of Goods Sold	160	150	140						38.0%	of sales
Depreciation	24	9	9						20.0%	of beginning net PP&E
Marketing Expense	23	24	24						7.0%	of sales
Other SG&A	107	108	111						30.0%	of sales
EBIT		45	69	82
Supplementary Schedules
Net Working Capital
	working cash	10	10	10						2.8%	of sales
	A/R	98	99	100						100	days sales outstanding	AR = sales*(DSO/365)
	Inventory	310	291	272						708	days of COGS	Inv = cogs*(DCO/365)
	Other CA	7	7	7						2.0%	of sales
	A/P	90	90	90						90	days of cash op expenses	AP = cash op exp*(DCO/365)
Net working capital	335	317	299
	D NWC
Other assets	45	45	45						12.50%	of sales
	D Other assets
Beginning net PP&E	144	140	132
Capital Expenditures	20	20	20						given and constant
Depreciation	24	28	26						20%	of beginning net PP&E
Ending Net PP&E	140	132	126

Free Cash Flow Calculation				Pro Forma =>
					2013	2014	2015	2016	2017
EBIT
EBIT(1-t)		tax rate =	40%
Depreciation
Capital expenditures
D NWC
D Other assets
Free cash flow
Terminal value	Perp. g =	3%							growing perpetuity
Discount factor
PV(FCF + TV)
PV Enterprise
Less EOY 2008 Debt			301
Estimated Equity Value
number of shares (000,000s)		10
Value per share			$ -