1)Based on the forecast and the methodology discussed in this course, can you justify the $110/share valuation? The $12/share valuation of the “stub”? For the purpose of this part, assume that the assumptions underlying are correct. Present a DCF valuation of the restructured firm based on the assumptions underlying forecasts. Hint: are the fore casted cash flows of the type of cash flows that you need for valuation purposes?
2)Are these forecasts (the firm’s forecasts) reasonable? Provide an evaluation/critique of the main assumptions.
3)Make your own forecast, which you believe is reasonable. What is the value to shareholders of the restructuring proposed by Kraft based on your assumptions?state your main assumptions and value Kraft accordingly
