MARY WASHINGTON 1. Are you comfortable with Atwoods forecast in exhibit 3?Do you think its feasible? 2. How could you use the past internal medicine transaction to estimate a credible bid price for Mary Washington Pediatrics? 3. How could you use a DCF based estimate for the practice value? a. Based on exhibit 3 what is the Free Cash Flow expected for each year? b. How would you estimate a terminal value for the practice in 2023? 4. What amount would you suggest Atwood and Suarez submit as an opening bid on the practice? If their offer is rejected how high should they be willing to go? 5. How concerning is the need to use debt to finance the deal? The current owners have no debt in the business. Is it better for the practice to have no debt? EATON CORPORATION 1. Why is Arnold considering the sale of Eatons Hydraulics Business? Does it make sense financially and strategically to sell the business? 2. Review Eatons forecast for the Hydraulics Business in exhibit 5. Critique the assumptions underlying the forecast. Are the assumptions realistic? 3. Use the Excel Valuation model provided in exhibit 5 to test the sensitivity of the business value to changes in the assumptions in the model. 4. What factors affect Eatons WACC? Use the data provided in the case to estimate an appropriate WACC for Eaton. 5. Review the data and descriptions of the firms that manufacture or purchase Hydraulic equipment, provided in Exhibits 8A and 8B. Which firms are most comparable to Eaton Hydraulics? Based on your analysis of these firms estimate an appropriate WACC for Eatons Hydraulics Business. How does this estimate compare to Eatons Corporate WACC? 6. Should Arnold agree to sell the Hydraulics business to Danfoss for $3.3 billion?If not, what should he do?