Que.

Students may elect to use the eVal Financial Forecasting Model or Prof. Stevens' ExcelDiscounted Free Cash Flow Valuation Modelfor the DCF Stock Valuation part of this assignment.If the eVal model is selected, make sure that financial information is available for the company that is selected for theassignment (See: http://www.lundholmandandsloan.com).Similarly, if Prof. Stevens' model is used for the assignment make sure that financial information is available (e.g., Yahoo Finance, etc.). (Note: Alternatively, theValuePro.netmodel may be usedfor the DCF valuationbut the final score for the assignment will be reduced by 20% if that alternative is selected.)

Theactual Excel forecasting model(either eVal or Prof. Stevens' model)must be submittedwith the assignment.

Theinstructor'sEVA/MVA Excel Modelmust be used for the EVA/MVA analysis.That model must be submitted with the assignment, too.

Assignment:DCF ValuationandEVA/MVA Analysis

Using the company that was selected for the class, there are two parts to this assignment:

1. DCF Company Valuation-

Prepare a DCF Valuation of the selected company usingeither:(a)the eValExcel Modeland the projections developed in Week 2,or,(b) Professor Stevens'Excel Financial Forecasting Model.Both of the models have an embedded worksheet that accommodates the Discounted Free Cash Flow stock valuation.

Make sure that the stock valuation model is submitted with the written analysis.

Discuss, interpret and explain theassumptions (variables) used in the analysis.

Discuss, interpret and explain theresultsof the analysis. This involves comparingthe intrinsic value of the company's stock valuation to the current stock priceand carefully explaining any differences.

2. EVA & MVA Analysis -

Prepare an analysis of EVA and MVA for the selected company.An Excel model isprovided by the instructor. Explain the results.

Make sure that the EVA/MVA Excel model is submitted with the written analysis.

CONTENT OF THE ANALYSIS

The analysisassociated withthe two parts of theassignmentneeds to include:

1.Explanation of the Variables Used in the DCF Valuation- Explainand justify all of the variables used in the DCF valuation. These would include, but are not limited to, the growth rates, capitalization structure, cost of capital components,WACC,etc.

2.Explanation and Interpretation of DCF Valuation Results- Explain the results of the DCF analysis. This should include an analysis of any difference between the results of the DCF analysis and the current stock price.

3.Explanation of the Data Used for the EVAAnalysisand Interpretation of Results- Present the results of the EVA analysis and explain what they mean. The analysis shoulddiscussfuture EVA results and what variables can affect those results either positively or negatively.

4.Explanation of the Data Used for the MVA Analysis and Interpretation of Results-Present the results of theMVA analysis and explain what they mean. The analysis should explain a discussion of futureMVA results and what variables can affect those results either positively or negatively.

Writing Instructions

The discussion portion of the analysis should be three to five pages in length, double spaced, and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be submitted limited to four separate attachments in an appendix after the written portion of the paper.

The paper should begin with a short introduction and then proceed to examine the four topics outlined in the previous section.

The subheadings used in the paper should be:

1.Introduction

2.Explanation of the Variables Used in the DCF Valuation

3. Explanation and Interpretation of DCF Valuation Results

(Including comparison and explanation of differences between the current stock price and results of the DCF valuation.)

4. Explanation of theData Used for the EVAAnalysisand Interpretation of Results

5.Explanation of the Data Used for the MVA Analysis and Interpretation ofResults

Evaluation:12.5%of final course grade.

Completeness of analysis:The analysis must demonstrate a solid understanding ofdiscounted free cash flow stock valuation and EVA/MVA analysis.All assumptions used in preparing the projectionsfor the projectneed to bepresented andthoroughly explained.

Organization:The papershould be well-organized and follow a logical pattern of analysis and discussion.

Presentation:Papers should meet professional business standards and meet APA formatting requirements.

Spelling, punctuation, and grammar:There should be few errors in grammar and punctuation. All sentences must be complete and well-structured.

Submission and Format:The completed paper is to be submitted to the "Gradebook" location designated for the assignment.The paper must be in Word format otherwise no credit is earned for the assignment.

The paper is also to be submitted to the Online Classroom.Thiswill allow students to examine and discuss the various projects.