pg. 13-27 LO2 E13-16. Estimating Share Value Using the DCF Model Following are forecasts of Illinois Tool Works Inc. sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018. $ millions {:[" Reported "],[2018]:} Forecast Horizon Period {:[" Terminal "],[" Period "]:} 2019 2020 2021 2022 Sale $14,768 $15,6 $16,593 $17,589 $18,644 $19,017 NOP 2,7 2,8 3,C 3,2 3,4 3,499 NOA 9,462 10,028 10,630 11,268 11,944 12,183 Answer the following requirements assuming a discount rate (WACC) of 7.35%, a terminal period growth rate of 2%, common shares outstanding of 328.1 million, and net nonoperating obligations (NNO) of $6,204 million. a. Estimate the value of a share of ITW's common stock using the discounted

Estimating Share Value Using the DCF Model Following are forecasts of Illinois Tool Works Inc. sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018. Answer the following requirements assuming a discount rate (WACC) of 7.35%, a terminal period growth rate of 2%, common shares outstanding of 328.1 million, and net nonoperating obligations (NNO) of $6,204 million. a. Estimate the value of a share of ITW's common stock using the discounted cash flow (DCF) model as of December 31, 2018. b. Illinois Tool Works Inc. closed at $144.21 on February 15,2019 , the date the 10K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference