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% Reported Forecast Horizon Period Terminal millions Sales NOPAT NOA 2018 $173,318 2019 23,457 371,601 2020 2021 $183,563 $194,423 $205,935 $218,138 $ 24,644 25,969 27,374 28,862 393,493 416,949 441,813 468,169 2022 Period 222,501 29,439 477,532 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. Assumptions Discount rate (WACC) Common shares outstanding 5.70% 7,281.6 million Net nonoperating obligations (NNO) $177,717 million Noncontrolling interest $12,357 million Forecast Reported Horizon Terminal ($ millions) Increase in NOA 2018 2019 2020 2021 2022 Period $ 0 $ FCFF (NOPAT - Increase in NOA) 0 Present value of horizon FCFF 0 oo o 0 $ 0 0 $ 0 0 $ 0 0 0 0 0 Cum. present value of horizon FCFF $ 0 Present value of terminal FCFF 0 Total firm value 0 Less (plus) NNO 0 Less NCI 0 Firm equity value $ Shares outstanding (millions) 0 0 Stock price per share $ 0 c. AT&T closed at $30.85 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 6.2%, what would the valuation estimate have been? Value 0 What about if WACC has been 5.2%? Value +A $ 0