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Calculate cost of debt, cost of equity, and weighted average cost of capital (WACC). For interest income and expense, I prefer to state them as percentages of the average debt balance of the last two years. It is a good practice to verify the intended debt-vs-total-capital balance post-transaction when possible.
The following are the tools for valuation: Microsoft Excel - required Monte Carlo simulator - highly recommended (for scenario / sensitivity analysis). Inexpensive Excel-plugin simulator such as @RISK are available for download online. Information listed in the DCFanalysis: See the items listed under DCF above.
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DCF Analysis 
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