MASONITE INTERNATIONAL CORPORATIONEstimation of Weighted average cost of capital (WACC) Projection of your firm's future cash flows: You should identify both stand-alone cash flows and pro-forma cash flows (i.e. cash flows including merger synergies and other deal-related cash flows, such as cash payout). You may obtain the projections by management, analysts, financial advisors, or form your own projections. o www.sec.gov is a good resource of information Valuation Analysis Conduct a Discounted Cash Flow (DCF) analysis using the cash flow projections and WACC from above. Use stand-alone cash flow to estimate the company stock's stand- alone value. Use the pro-forma cash flow to estimate the stock value with synergy. Conduct earnings (or EBITDA, sales, etc) multiple valuation analysis using peers and/or recent transactions. Calculate abnormal stock returns (net of market) around deal announcements