Question: Chose a company (listed on a major US exchange) and construct a DCF model. Your submission should include a spreadsheet with the completed DCF model

Chose a company (listed on a major US exchange) and construct a DCF model.

Your submission should include a spreadsheet with the completed DCF model as well as answers to the following questions:

What did you use as the risk-free rate? Why? What did you use as the market return? Why? Do you think that the beta makes sense for the company? Why? What did you use as the rate of debt? Why?

What is the intrinsic value of your company? Should you buy or sell?

***For the following questions, make sure you provide tangible, numeric answers.*** How sensitive is the Intrinsic value to the WACC ? How important is the terminal value to the total intrinsic value?

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