What do you think of these questions?

1. specific questions are in the doc.

2. some errors are in the excel, you need to correct it

3.please be unique and formal

4. you should have accounting background

Based on our results, discuss whether you feel the stock appears to be over or under valued. Specifically address what may be driving the valuation.
What adjustments would you make if you had more data? What additional data would you obtain? (e.g. internal data from the company)
What assumptions do you feel are most uncertain and sensitive to the valuation?

Focus on excel – forecast 1 / wacc/ forecast 3/ ropi

There are some errors in WACC

If you can correct the WACC spreadsheet, that is good

If you need company’s additional information, you can search the AEO 10-k or other financial information on the Yahoo finance.

Please be reasonable forecast

Answer Preview……………..

The stock seems to be undervalued because of the negative figures in the forecast PV. The impact of this undervalue will enable investors to still get their value as the assets will still sale and cover a big portion of the investment. Additionally, the stated book value does not clearly reflect on what the company would make or earn when the liquidation was applied……………………..

APA 163 words & Excel file