Estimating Share Value Using the DCF Model

Following are forecasted sales, NOPAT, and NOA for AT&T for $2019$ through $2022$

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.

a$.$ Forecast the terminal period values assuming the following terminal period growth rate.

Assumption

Terminal period growth rate $2\%$

$\backslash$table$[[,$Reported,Horizon Period,,,,Terminal$],[$S millions,$2018,2019,2020,2021,2022,$Period,$],[$Sales$,$$$173,318,$$$183,563,$$$194,423,$$$205,935,$$$218,138,$$$,0],[$NOPAT$,23,457,24,644,25,969,27,374,28,862,,0],[$NOA$,371,601,393,493,416,949,441,813,468,169,,0]]$

b$.$ Estimate the value of a share of AT&T common stock using the discounted cash flow $($DCF$)$ model as of December $31,2018$ using the following assumptions and the information above.

$\backslash$table$[[$Assumptions$,5\mathrm{.}70\%,],[$Discount rate $($WACC$),7,281\mathrm{.}6,$million$],[$Common shares outstanding,$$177,717,$million$],[$Net nonoperating obligations $($NNO$),$$$12,357,$million$],[$Noncontrolling interest,,$]]$

c$.$ AT&T closed at $$30\mathrm{.}85$ on February $20,2019,$ the date the Form $10-K$ was filed with the SEC. How does your valuation estimate compare with this closing price?

d$.$ If WACC has been $6\mathrm{.}2\%,$ what would the valuation estimate have been?

$\backslash$table$[]$ Value

What about if WACC has been $5\mathrm{.}2\%?$

$\backslash$table$[[$$$3,]]$

Please answer all parts of the question.