Examine Exhibit 7 in detail How important are each of the underlying financial

Examine exhibit 7 in detail how important are each of

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Examine Exhibit 7 in detail. How important are each of the underlying financial assumptions in the Return on Capital forecast? The DB model forecast for 2014-2015 are primarily driven by store growth, sales growth, EBITDA margin and Return on Capital.The Deutsche Bank base-case DCF forecast for 2014-2024 has been provided on Blackboard. Perform a basic DCF valuation based on this forecast. Assume a3.4% perpetual growth rate for terminal value and a WACC of 6.9%. Based on an assumption of no debt in the capital structure, what it the implied price per share of WF based on 372 million shares outstanding?Do you agree with these financial assumptions in the Deutsche Bank forecast? Would you adjust the financial forecast for WF in light of recent news? What adjustments would you make to the model? How will that impact your valuation? Be prepared to defend the basis of your forecast for WF’ performance.Using Marshall library resources identify the details behind the recentAmazonacquisition of Whole Foods. What was the transaction Enterprise Value paid? What was the WF’ EBITDA at the acquisition date? Think about the strategic rationale of the acquisition and be prepared to discuss in class.

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