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	Answer	Answer	Answer	Answer
Discount factor [1/(1+rw)t]			Answer	Answer	Answer	Answer
Present value of horizon ROPI			Answer	Answer	Answer	Answer
Cumulative present 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
Stock price per share		$Answer