Please use MSFT (Microsoft) as the company! Thank you

Often, one of the first things that you do when learning how to do research is to replicate an already existing study.

The assignment this week is to replicate a DCF model for a company of your choosing using the video "Equity valuation using a DCF model" as a guide.

Chose a company (listed on a major US exchange) and using the steps outlined in the video, construct a DCF model.

Your submission should include a spreadsheet with the completed DCF model as well as answers to the following questions:

What did you use as the risk-free rate? Why? What did you use as the market return? Why? Do you think that the beta makes sense for the company? Why? What did you use as the rate of debt? Why?

What is the intrinsic value of your company? Should you buy or sell?

***For the following questions, make sure you provide tangible, numeric answers.*** How sensitive is the Intrinsic value to the WACC ? How important is the terminal value to the total intrinsic value?