Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022

a. Forecast the terminal period values assuming a 1% terminal period growth for all three model inputs, that is Sales, NOPAT, and NOA. Note: Round your answers to the nearest whole dollar

Sales: 17847

NOPAT 3141

NOA 6702

b. Estimate the value of a share of Colgate-Palmolive common stock using the discounted cash flow (DCF) model; assume a discount rate (WACC) of 5.7%, common shares outstanding of 862.9 million, net nonoperating obligations (NNO) of $5,696 million, and noncontrolling interest (NCI) from the balance sheet of $302 million. Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56)

Stock Price Per Share :

d. The forecasts you completed assumed a terminal growth rate of 1%. What if the terminal rate had been 2%. What would your estimated stock price have been? Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56).

Stock price per share: $

e. What would WACC have to be to warrant the actual stock price on February 21, 2019? Note: Round percentage to two decimal places (for example, round 15.555% to 15.56%).

WACC

Forecast Horizon Period Colgate Palmolive (CL) Reported $ millions 2018 2019 2020 2021 2022 Sales $15,699 $16,170 $16,656 $17,155 $17,670 2,764 2,846 2.931 3,019 3,110 NOPAT NOA 5,895 6,072 6,255 6,442 6,636 Forecast Horizon Period Colgate Palmolive (CL) Reported $ millions 2018 2019 2020 2021 2022 Sales $15,699 $16,170 $16,656 $17,155 $17,670 2,764 2,846 2.931 3,019 3,110 NOPAT NOA 5,895 6,072 6,255 6,442 6,636