To obtain the value of Warrnambool’s debt, use the sum of its long-term debt and short-term debt from its balance sheet. – To obtain the value of Warrnambool’s equity, use the produce of its most recent stock price and the number of shares outstanding. – The remaining information can be found in Exhibit 8. Question 2: – Use DCF valuation to estimate the share price for Warrnambool. – For the 2016 baseline numbers, use the income statement in Exhibit 1. – Use the forecasting assumptions in Exhibit 9 to forecast Warrnambool’s free cash flows. – Use the WACC to discount the free cash flows. Question 3: – Use relative valuation to estimate the share price for Warrnambool.
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