Question text Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation’s sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. [table] | Reported | Forecast Horizon Period | | | | Terminal $ millions | 2018 | 2019 | 2020 | 2021 | 2022 | Period Sales | $75,356 | $79,124 | $83,080 | $87,234 | $91,596 | $93,428 NOPAT | 3,269 | 3,402 | 3,572 | 3,751 | 3,939 | 4,017 NOA | 23,020 | 24,197 | 25,407 | 26,677 | 28,011 | 28,571 [/table] Answer the following requirements with the following assumptions: [table] Assumptions | | Terminal period growth rate | 2% | Discount rate (WACC) | 7.63% | Common shares outstanding | 517.80 | million Net nonoperating obligations (NNO) | $11,723 | million [/table] Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of February 2, 2019. [table] | | Reported | Forecast Horizon | Terminal | ($ millions) | 2018 | 2019 | 2020 | 2021 | 2022 | Period | Increase in NOA | | Answer 1CorrectMark 1.00 out of 1.00 | Answer 2CorrectMark 1.00 out of 1.00 | Answer 3CorrectMark 1.00 out of 1.00 | Answer 4CorrectMark 1.00 out of 1.00 | Answer 5CorrectMark 1.00 out of 1.00 | FCFF (NOPAT - Increase in NOA) | | Answer 6CorrectMark 1.00 out of 1.00 | Answer 7CorrectMark 1.00 out of 1.00 | Answer 8CorrectMark 1.00 out of 1.00 | Answer 9CorrectMark 1.00 out of 1.00 | Answer 10CorrectMark 1.00 out of 1.00 | Present value of horizon FCFF | | Answer 11CorrectMark 1.00 out of 1.00 | Answer 12CorrectMark 1.00 out of 1.00 | Answer 13CorrectMark 1.00 out of 1.00 | Answer 14CorrectMark 1.00 out of 1.00 | | Cum. present value of horizon FCFF | Answer 15CorrectMark 1.00 out of 1.00 | | | | | | Present value of terminal FCFF | Answer 16CorrectMark 1.00 out of 1.00 | | | | | | Total firm value | Answer 17CorrectMark 1.00 out of 1.00 | | | | | | NNO | Answer 18CorrectMark 1.00 out of 1.00 | | | | | | Firm equity value | Answer 19CorrectMark 1.00 out of 1.00 | | | | | | Shares outstanding (millions) | Answer 20CorrectMark 1.00 out of 1.00 | | | | | | Stock price per share | Answer 21CorrectMark 1.00 out of 1.00 | | | | | [/table]