The company name is Costco Wholesale

1. Estimate cost of equity
   • Select a model for estimating cost of equity, e.g. CAPM
   • Research input values required by the selected model
   • Compute cost of equity
2. Estimate terminal value
   • Select a model for estimating terminal value
   • Research input values required by the selected model
   • Compute terminal value
3. Estimate value of equity
   • Combine terminal value with free cash flows to equity from the last assignment to determine total cash flows to equity for your target company
   • Estimate the value of equity by computing the present value of total cash flows to equity using the cost of equity as the discount rate
   • Compute the estimated price per share
4. Scenario analysis
   • Propose best case and worst case scenarios
   • Compute the value of equity (total and per share) in each scenario
5. Sensitivity analysis
   • Identify input variable(s) that you consider would have the greatest impact on the estimate equity value
   • Perform sensitivity analysis (e.g. using Data Table in Excel) and compute estimated value of equity per share at different levels of these input variable(s)