Estimating Share Value Using the ROPI Model Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011. Refer to the information in the table to answer the following requirements. Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $3,750 $4,500 $5,400 $6,480 $7,776 NOPAT NOA 464 581 679 815 957 1,350 1,624 1,922 2,306 2,798 $ 7,853 978 2,796 Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(288) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations). (a) Estimate the value of a share of Abercrombie & Fitch common stock using the residual operating income (ROPI) model as of January 29, 2011. Rounding instructions: Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations. Do not use negative signs with any of your answers. (in millions) Reported 2011 ROPI (NOPAT - [NOABeg xrw]) Discount factor [1 / (1 + rwjt] Present value of horizon ROPI (Round5 decimal places) Cum present value of horizon ROPI $ Present value of terminal ROPI NOA Total firm value 0 0 x 0 x 0 x NNO 0 x Firm equity value $ 0 % Shares outstanding (millions) 86.2 Stock price per share $ 2012 Horizon Period 2013 2014 2015 0 * 0 x 0 x 657.63 x Terminal Period 627.92 x 1 * 0 x 0 % 0 x 0 * 0 % 0 * 0 x (round one decimal place) 73 x (round two decimal places)