Goodhouse blends natural plant ingredients to create a wide variety of food products for home use. Most are intended to be used in customers own recipes. You are an analyst evaluating Goodhouse for possible inclusion in your investment portfolio.

Required:

a. Use the data provided in the spreadsheet to estimate Goodhouses intrinsic value per share of common stock. Show your calculations.

b. In an alternate universe, the Alt- Goodhouse Company has a WACC of only 7%. All other data is the same as for the Goodhouse in our universe. Which company has the higher intrinsic value per common share? Why?