Milano, Inc. has the following actual (for 2018) and forecast (for 2019 onwards) information: Year NOAEnd...
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Milano, Inc. has the following actual (for 2018) and forecast (for 2019 onwards) information: Year NOAEnd of Year NOPAT Additional Data 2020 $6,837.0 $737.0 WACC: 9.3% Cost of equity (KE): 11% Terminal year growth rate: 1% Net nonoperating obligations (NNO) at the end of 2020: $4,640 million Noncontrolling interest (NCI) at the end of 2020: $299 million (actual) 2021 7,012.0 818.0 2022 8,193.0 902.0 2023 8,378.0 989.0 2024 8,570.0 979.0 Number of shares at the end of 2020: 862. 9 million Terminal Year 8,655.7 988.8 Required: Calculate the value of Milano stock at the end of 2020 using (i) the Free Cash Flow and (ii) Residual Operating Income (ROPI) valuation models. Milano, Inc. has the following actual (for 2018) and forecast (for 2019 onwards) information: Year NOAEnd of Year NOPAT Additional Data 2020 $6,837.0 $737.0 WACC: 9.3% Cost of equity (KE): 11% Terminal year growth rate: 1% Net nonoperating obligations (NNO) at the end of 2020: $4,640 million Noncontrolling interest (NCI) at the end of 2020: $299 million (actual) 2021 7,012.0 818.0 2022 8,193.0 902.0 2023 8,378.0 989.0 2024 8,570.0 979.0 Number of shares at the end of 2020: 862. 9 million Terminal Year 8,655.7 988.8 Required: Calculate the value of Milano stock at the end of 2020 using (i) the Free Cash Flow and (ii) Residual Operating Income (ROPI) valuation models.
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