Instrucciones Questions and Points to help in the analysis. What evidence is there that Whole Foods has been successful? Do you anticipate that this success will continue? An additional Exhibit should be supplemental to Exhibit 7 with a forecast for eight years. As a starting valuation, what do you believe the implied value of Whole Foods' shares to be, based on this base-case forecast? For your discount rate, please use a market risk premium of 5.0%. What are the primary value drivers underlying the stock price of Whole Foods? To date, Short's research report recommends that Whole Foods is undervalued by the market and is a buy. In light of recent events, do you think she should continue to maintain that recommendation? Back up your analysis with a discounted cash flow valuation of Whole Foods that explicitly outlines the assumptions that are important to support your argument. What is going on at Whole Foods Market, and how does that affect Karen Short? What is the case for a BUY? What assumptions are required to justify a higher VALUATION (THINK ABOUT OPERATING AND FINANCIAL METRICS LEARNED) What is the case for a SELL? What would result in a LOWER VALUATION? (THINK ABOUT OPERATING AND FINANCIAL METRICS LEARNED) What is your assessment of the base-case forecast? Do you believe that it provides a fair representation of the financial prospects for Whole Foods? If not, what changes would you make?