Is an integrated three statement model necessary for forecasting and valuing a company? I have a hedge fund interview and need a DCF model. Is not not possible to forecast unlevered free cash flow using: tax-affected EBIT, add capex, change in working capital, and D&A. Then once you discount unlevered free cash flow using WACC to subtract current debt on the balance sheet to get equity value?

I understand interest payments can increase over time. I this captured in the cost of debt in WACC? Can you not \use historic net working capital as a percent of sales for forecasting unlevered free cash flow?