This chapter transitions from theory and modeling to application. The assignment challenges you to apply everything you've learned to build your own complete DCF model from scratch. While a completed version is available for reference, the process of constructing the model yourself is where the learning really solidifies.

The assignment begins with the blank version of the model. Your first task is to import financial data into the correct tabs. This mirrors the typical starting point in a real-life valuation assignment, where raw financials must be translated into a structured model.

You'll populate:

• Income Statement Source Tab with revenue, cost of goods sold, SG&A, depreciation, and taxes;

• Balance Sheet Source Tab with data like cash, receivables, payables, and long-term assets.

The challenge here isn't just copying numbers—it's ensuring that they flow correctly through the model and feed into the UFCF calculation. Getting the references right will ensure your projections are accurate and your final enterprise value is valid.

To keep things aligned:

• Use consistent formatting across cells to avoid confusion later;

• Verify row alignment across tabs (e.g., ensure "2022" in one sheet corresponds to "2022" in others);

• Cross-reference totals between statements to catch errors early.

This assignment also reinforces the importance of model structure. Each tab serves a clear function and connects to others logically. As you input data, trace how it affects downstream calculations—especially UFCF and terminal value.