Estimating Share Value Using the ROPI Model Following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2013. Refer to the information in the table to answer the following requirements.

	Reported	Horizon Period
(In millions)	2013	2014	2015	2016	2017	Terminal Period
Sales	$4,511	$4,872	$5,262	$5,683	$6,138	$6,261
NOPAT	242	261	282	305	329	336
NOA	1,446	1,562	1,687	1,821	1,967	2,007

Answer the following requirements assuming a discount rate (WACC) of 10%, a terminal period growth rate of 2%, common shares outstanding of 78.4 million, and net nonoperating obligations (NNO) of $(372) 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 February 2, 2013.

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.

	Reported	Horizon Period
(In millions)	2013	2014	2015	2016	2017	Terminal Period
ROPI (NOPAT - [NOABeg rw])		Answer	Answer	Answer	Answer	Answer
Discount factor [1 / (1 + rw)t ]	(Round 5 decimal places)	Answer	Answer	Answer	Answer
Present value of horizon ROPI		Answer	Answer	Answer	Answer
Cumpresent value of horizon ROPI	Answer
Present value of terminal ROPI	Answer
NOA	Answer
Total firm value	Answer
NNO	Answer
Firm equity value	Answer
Shares outstanding (millions)	Answer	(round one decimal place)
Stock price per share	Answer	(round two decimal places)

Estimating Share Value Using the ROPI Model Following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2013. Refer to the information in the table to answer the following requirements. Reported Horizon Period (in millions) 2013 2014 2015 2016 2017 Terminal Period Sales $4,511 $4,872 $5,262 $5,683 56,138 $5,261 NOIAI 2:12 261 282 305 336 1.446 1.562 1,687 1,821 1.967 2007 329 NOA Answer the following requirements assuining a discount rale (WACC) of 10%, a terminal period growth rate of 2%, common shares outstanding of 78.4 million, and nel nonoperating obligations (NNO) of $(372) 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 February 2, 2013. Rounding instructions: Round answers to the nearest whole number unless noted otherwise, Use your rounded answers for subsequent calculations, Horizon Period 2015 2016 2017 Terminal Period OX OX 0 X OX Do not use negative signs with any of your answers. Reported (In millions) 2013 2014 HOP'INDIAI INDABegw] X Discount factor [1/(1-rwit] (Round 5 decimal places) OX Present velue of horizon ROPI OX Cum present walue of horizon ROPIS OX 0 x Present value of terminal ROPI Ox NOA OX Total firm value OX NNO OX Firm equity value S OX Shares ou stand n (millions 0x (round one decima place) Stock price per share S x fround two decimal places)