Warp

Warp Lesson -
In this lesson I used the pre-selected image and went to edit->transform->warp. I made sure the "switch between free transform and warp" option was selected, and then changed the preset from "custom" to flag. The preset was a little intense so I selected the second transform dot on (top row) and moved it up to decrease the wave a bit. Enter to place, and then added a shadow.
To add a shadow, I selected "fX" on the bottom of the layers panel. Then, I selected the drop shadow option and adjusted the softness and placement.