Question: There is enough information so please answer all questions and show work Analysis Module 13 Chapter 13 Homework Estimating Share Value Using the DCF Model



Analysis Module 13 Chapter 13 Homework Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT, and net operating assets (NOA) as of February 26, 2011, for Best Buy, Inc. Horizon Period Reported (In millions) 2011 2012 2013 2014 2015 S62,208 $40,023 $44,577 $49,650 $55.300 $61,592 NOPAT 1,448 1,594 1,781 1,990 2,240 2,236 5,256 5,867 6,544 7,299 8,125 8,194 NOA terminal period growth rate of 1%, common shares outstanding of 410.5 million, net nonoperating obligations (NNO) of $772 million and noncontrolling interest (NCI) on the balance sheet of $690 million. (a) Estimate the value of a share of Best Buy's common stock using the discounted cash flow (DCFl model as of February 26, 2011. Rounding instructions: Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations. Analysis Module 13 Chapter 13 Homework Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT, and net operating assets (NOA) as of February 26, 2011, for Best Buy, Inc. Horizon Period Reported (In millions) 2011 2012 2013 2014 2015 S62,208 $40,023 $44,577 $49,650 $55.300 $61,592 NOPAT 1,448 1,594 1,781 1,990 2,240 2,236 5,256 5,867 6,544 7,299 8,125 8,194 NOA terminal period growth rate of 1%, common shares outstanding of 410.5 million, net nonoperating obligations (NNO) of $772 million and noncontrolling interest (NCI) on the balance sheet of $690 million. (a) Estimate the value of a share of Best Buy's common stock using the discounted cash flow (DCFl model as of February 26, 2011. Rounding instructions: Round answers to the nearest whole number unless noted otherwise. Use your rounded answers for subsequent calculations
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