Estimating Share Value Using the DCF Model

Following are forecasts of sales, net operating profit after tax $($NOPAT$),$ and net operating assets $($NOA$)$ as of December $31,2018,$ for Humana.

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.

Answer the following requirements with the following assumptions:

NNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities.

$($a$)$ Estimate the value of a share of Humana's common stock using the discounted cash flow $($DCF$)$ model as of December $31,2018.$