Question: Estimating Share Value Using the DCF ModelFollowing are forecasts of sales, net operating profit after tax ( NOPAT ) , and net operating assets (

Estimating Share Value Using the DCF ModelFollowing 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.ReportedForecast Horizon PeriodTerminalmillionsSalesNOPATNOA2018$56,9122,4924,0322019$57,7662,5424,0972020$58,6322,5804,1582021$59,5122,6194,2212022$60,4042,6584,284Period$61,0082,6844,327Answer the following requirements with the following assumptions:Answer the following requirements with the following assumptions:AssumptionsTerminal period growth rate1%Discount rate (WACC)-7.8%Common shares outstanding135.60 millionNet nonoperating obligations (NNO)$(6,129) millionNoncontrolling interest$0 millionNNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities.(a) Estimate the value of a share of Humana's common stock using the discounted cash flow (DCF) model as of December 31,2018.2019Forecast Horizon202020212022TerminalE($ millions)Reported2018Increase in NOAFCFF (NOPAT - Increase in NOA)Present value of horizon FCFFCum. present value of horizon FCFF $Present value of terminal FCFFTotal firm valueNNOFirm equity valueShares outstanding (millions)Stock price per share

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