Estimating Share Value Using the ROPI 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.

Reported Horizon Period

Terminal

$ millions 2016 2017 2018 2019 2020 Period

Sales $73,785 $75,261 $76,766 $78,301 $79,867 $80,666

NOPAT 3,312 3,387 3,454 3,524 3,594 3,630

NOA 21,445 21,872 22,309 22,755 23,210 23,443

Answer the following requirement 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 residual operating income (ROPI) 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.

Reported Forecast Horizon

Terminal

($ millions) 2016 2017 2018 2019 2020 Period

ROPI (NOPAT - [NOABeg x rw]) Answer

2,100

Answer

2,142

Answer

2,185

Answer

2,229

Answer

2,237

Discount factor [1/(1+rw)t] Answer

0.9434

Answer

0.89

Answer

0.83962

Answer

0.79209

Present value of horizon ROPI Answer

1,981

Answer

1,906

Answer

1,835

Answer

1,766

Cumulative present value of horizon ROPI $Answer

7,488

Present value of terminal ROPI Answer

??????

NOA Answer

21,445

Total firm value Answer

?????

NNO Answer

8,488

Firm equity value Answer

??????

Shares outstanding (millions) Answer

602

Stock price per share $Answer

????

All of these answers I have are correct I just need the ones that I have "????" by. Thanks