On page 360 in our book (Table 9.1), you will see a "discounted cash flow" example. This is a "full" example that we can use to put everything together, so to speak. In this example, pro forma financial statements were created so that it was possible to estimate periodic free cash flows. Periodic free cash flows are then discounted using the weighted average cost of capital. Please check the attachment.

In base of the Table 9.1:

1) reproduce this example using MS Excel,

2) define "terminal value,"

3) solve for the firm's value as a whole, and

4) solve for the firm's stock value on a per share basis.