Question: Please help, thanks! Estimating Share Value Using the ROPI Model Following are forecasted sales, NOPAT, and NOA for Colgate - Palmolive Company for 2 0
Please help, thanks!
Estimating Share Value Using the ROPI Model
Following are forecasted sales, NOPAT, and NOA for ColgatePalmolive Company for through
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
a Forecast the terminal period values assuming the following terminal period growth rate.
b Estimate the value of a share of ColgatePalmolive common stock using the residual operating income ROPI model using the following assumptions and the information above.
c ColgatePalmolive's stock closed at $ on February the date the Form was filed with the SEC. How does your valuation estimate compare with this closing price?
d The forecasts you completed assumed a terminal growth rate of What if the terminal rate had been What would your estimated stock price have been?
Value
e What would WACC have to be to warrant the actual stock price on February
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