You would need to look up the most recent fiscal year for any company
A. Estimate free cash flow to the firm for the most recent fiscal year.
B. Comment whether this estimate can be used for valuation purposes – if you think the most recent set of financial statements does not provide accurate estimate of the firm’s earnings power, explain which inputs into the free cash flow to the firm equation may be modified (averaged out over several years, or else).
Your deliverable should include print-outs of financial statements from the annual report. Underline or circle in color the numbers from the financial statements you used to estimate free cash flow to the firm (FCFF).