Hi,

I need assistance on the steps required to do this exercise below. The company is Zoetis

Comments about the intrinsic value of the stock (on the day of last available 10-K publication) and how the value would differ under more optimistic and pessimistic assumptions (sensitivity tests).

Valuation Forecast 1 2 3 4 5 6 7 8 9 10 11 Cost of Equity Capital 4.49% Abnormal Earnings 1,668.99 1,946.74 2,020.36 2,078.36 2,120.85 2,146.38 2, 155.41 2, 144.99 2,117.51 2,072.64 2,072.64 constant future cash flow Free Cash Flow to Equity 8,680.39 1,842.09 1,896.70 1,967.71 2,021.96 2,089.10 2,088.02 2,120.50 2, 118.66 2, 100.87 Present Value Factor (Discount Factor) 0.95699 0.91584 0.87645 0.83875 0.80268 0.76816 0.73512 0.70351 0.67325 0.64430 Discounted Cash Flow Model Present Value of Cash Flow up to 10 years 22,341.37 8,307.07 1,687.05 1,662.36 1,650.42 1,622.99 1,604.76 1,534.95 1,491.79 1,426.39 1,353.58 Terminal Value 29,715.07 46, 120.10 Total Value 52,056.44 Number of Shares 475.17 Value of Shares 109.55 Abnormal Earnings (Residual) Model 2 3 4 5 6 7 8 9 10 11 Cost of Equity Capital 4.49% Abnormal Earnings 1,668.99 1,946.74 2,020.36 2,078.36 2,120.85 2,146.38 2,155.41 2,144.99 2, 117.51 2,072.64 2,072.64 constant future cash flow Book value of equity 3,774.0 Present Value Factor (Discount Factor) 0.95699 0.91584 0.87645 0.83875 0.80268 0.76816 0.73512 0.70351 0.67325 0.64430 Present Value of Abnormal Earnings up to 10 years 16,099.73 1,597.21 1,782.89 1,770.74 1,743.23 1,702.36 1,648.76 1,584.50 1,509.02 1,425.62 1,335.40 Terminal Value 29,715.07 46, 120.10 Total Equity Value 19,588.8 Number of Shares 475.17 Value of Shares S 104.36