1.Goliath Manufacturing is considering acquiring Slingshot , a software development company . Golaith's analysts have determined that a two -stage model FCFF model is appropriate for their analysis and has developed proforma income statement and other financial data shown in the follow table. Calculate Slingshot's cash flows and estimate Slingshot's value as of January 2007 using DCF analysis. The WACC for Slingshot is 9.75%.If the merger is completed , Goliath plans to add debt to the capital structure that reduces the post-merger weighted average cost of capital , thus making the appropriate discount rate 9.50%