For the company Brown Forman:

1. Compute WACC.

2. Compute Free cash Flows for every year (you will be able to compute for four of the five years of data you have) for both Debt and Common Stock Holders and separately compute FCF for Common Shareholders.

3. Compute the growth rate in the free cash flows over the four years of data you have and use the geometric mean of the computed growth rates to project out the future free cash flows and compute the present value. When discounting, use WACC as the discount rate for FCF computed for debt and equity shareholders and use Rs as the discount rate for FCF computed for Shareholders respectively.

a. Separately assume a growth rate of six percent in these cash flows and compute the present value of future free cash flows for Debt and Equity Shareholders and Shareholders only (Separately).

4. As an analyst your recommendation for this stock would be Strong Buy / Buy / Hold / Sell / Strong Sell? Defend your answer with a Summary of your analysis using the information presented above.