Estimating Share Value Using the DCF Model Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011.

	Reported	Horizon Period
(In millions)	2011	2012	2013	2014	2015	Terminal Period
Sales	$ 3,750	$ 4,500	$ 5,400	$ 6,480	$ 7,776	$ 7,853
NOPAT	464	539	654	794	982	960
NOA	1,320	1,602	1,933	2,332	2,791	2,802

Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(261) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations). (a) Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) model as of January 29, 2011.

Rounding instructions:

• Round answers to the nearest whole number unless noted otherwise.
• Use your rounded answers for subsequent calculations.

Do not use negative signs with any of your answers.

	Reported	Horizon Period
(In millions)	2011	2012	2013	2014	2015	Terminal Period
Increase in NOA		Answer 0	Answer 0	Answer 0	Answer 0	Answer 0
FCFF (NOPAT - Increase in NOA)		Answer 0	Answer 0	Answer 0	Answer 0	Answer 0
Discount factor [1 / (1 + rw)t ]	(round to 5 decimal places)	Answer 0	Answer 0	Answer 0	Answer 0
Present value of horizon FCFF		Answer 0	Answer 0	Answer 0	Answer 0
Cum present value of horizon FCFF	Answer 0
Present value of terminal FCFF	Answer 0