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Step {3) Valuation Analysis (with Sensitivity Analyses) Using your own insights and assumptions, perform rm valuation models (including (i) Free Cash Flow (PCP), (ii) Residual

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Step {3) Valuation Analysis (with Sensitivity Analyses) Using your own insights and assumptions, perform rm valuation models (including (i) Free Cash Flow (PCP), (ii) Residual Earnings (RE), and (iii) Economic Prots (EP) methods] with sensitivig; aaarses for the case of Sears. As a strategic buyer, should Kmart under ESL's control have acquired Sears? Why or why not. How would Sears respond if Vornado or other \"vulture investors\" made bid for the company? How should ESL respond as a potential strategic buyer? Perform sensitivity analyses of rm valuation models based on alternative assumptions and parameter values (e.g. projected sales growth, Beta, forecast of capital expenditures, etc.)

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