Assignment

This assignment may be completed using either J.W. Nordstrom or Sinclair Broadcasting.

Tasks:

· Enter the most recent year financial data into the "Forecast" tab of the forecasting spreadsheet.

· Develop a set of forecasting parameters, based on the methodology covered in class on Thursday, 1 March. (See video archive if you missed the live session.)

· Complete the forecast using your set of parameters.

· Make a change (increase or decrease) to your gross profit margin (if Nordstrom) or your sales growth (if Sinclair) parameter. Note the changes to the forecast outcome that result from the change in the parameter.

Assignment  (Required submission for any grade above C)

Use the forecast with which you are provided to create a worksheet page that calculates the net cash flow and equity valuation (per share) for the sample company. The WACC and horizon growth rate are given in the spreadsheet.

NOTE: Use the spreadsheet provided to create your own valuation calculation.