Reference no: EM133187476

Start out with the same worksheet you used to create the sales forecast and add a tab for Discounted Cash Flow. Note that you will be turning in a single Excel workbook for this assignment.

1. Find the stock price for your company as of the date oft your company's most recent 10K. You can use Yahoo Finance, Google Finance, MSN Money, etc. to find historical stock prices, and there are many other websites that provide stock prices.

2. Find the number oft shares outstanding at year end for the most recent year. Your best source is your company's 10K. Usually the best source oft a downloadable 10K (Word or PDF) is the investor relations section oft your company's website.

3. Forecast the ftree cash flows using the historic data from the financial statements to compute the itive-year average oft the following ratios:

• Operating Income/Sales or EBIT/Sales. Note that you want to use a line item on your IS that only includes operating income and expenses-no non-operating-line items.
• Taxrate (income tax expense/income beftore tax)
• Gross property plant and equipment/sales
• Depreciation (from the income statement)/sales
• Net working capital/sales