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 January 30, 2016 Horizon Period Terminal Reported Period millions 2016 2017 2018 2019 2020 Sales $76,766 $78,301 $79,867 $80,666 $73,785 $75,261 3,387 3,454 3,524 3,594 3,630 NOPAT 3,312 NOA 21,445 21,872 22,309 22,755 23,210 23,443 Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million, and net nonoperating obligations (NNO) of $8,488 million. a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016 Instructions: Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places Do not use negative signs with any of your answers. Terminal Forecast Horizon Reported Period 2020 2019 2018 2017 2016 ($ millions) 0 0 Increase in NOA X X X X 0 0 0 FCFF (NOPAT - Increase in X X X NOA) 0 0 Discount factor [1/(1+rw)t] X X 0 0 0 0 Present value of horizon X X X FCFF Cum.present value of horizon FCFF X 0 Present value of terminal FCFF Total firm value X NNO X $ Firm equity value X 31.44 Shares outstanding X (millions) 69.7 Stock price per share X o X OX O X 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 January 30, 2016 Horizon Period Terminal Reported Period millions 2016 2017 2018 2019 2020 Sales $76,766 $78,301 $79,867 $80,666 $73,785 $75,261 3,387 3,454 3,524 3,594 3,630 NOPAT 3,312 NOA 21,445 21,872 22,309 22,755 23,210 23,443 Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million, and net nonoperating obligations (NNO) of $8,488 million. a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016 Instructions: Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places Do not use negative signs with any of your answers. Terminal Forecast Horizon Reported Period 2020 2019 2018 2017 2016 ($ millions) 0 0 Increase in NOA X X X X 0 0 0 FCFF (NOPAT - Increase in X X X NOA) 0 0 Discount factor [1/(1+rw)t] X X 0 0 0 0 Present value of horizon X X X FCFF Cum.present value of horizon FCFF X 0 Present value of terminal FCFF Total firm value X NNO X $ Firm equity value X 31.44 Shares outstanding X (millions) 69.7 Stock price per share X o X OX O X