Following are the income statement and balance sheet for TJJ Companies.

\section*{Required}

a. Compute net operating assets (NOA) as of January 26, 2008.

b. Compute net operating profit after tax (NOPAT) for fiscal year ended January 26, 2008, assuming a federal and state statutory tax rate of \(39.1 \%\).

c. Forecast TJX's sales, NOPAT, and NOA for 2009 through 2012 using the following assumptions

Forecast the terminal period value assuming a \(1 \%\) terminal period growth and using the NOPM and NOAT assumptions above.

d. Estimate the value of a share of TJX common stock using the discounted cash flow (DCF) model as of January 26, 2008; assume a discount rate (WACC) of \(7 \%\), common shares outstanding of 427.9 million, and net nonoperating obligations (NNO) of \(\$ 856\) million.

e. TJX Companies' (TJX) stock closed at \(\$ 33.31\) on February 26, 2008. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?

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TJX COMPANIES Balance Sheet Year Ended (In thousands) Assets Cash and cash equivalents... Accounts receivable, net. Merchandise inventories... Prepaid expenses and other current assets. Current deferred income taxes, net Total current assets.. Property at cost: Land and buildings.. Leasehold costs and improvements. Furniture, fixtures and equipment... January 26, January 27, 2008 2007 $ 732,612 143,289 $ 856.669 115,245 2,737,378 2,581,969 215,550 159,105 163,465 35,825 3,992,294 3,748,813 277,988 268,056 1,785,429 1,628,867 2.675,009 2,373,117 Total property at cost...... 4,738,426 4,270,040 Less accumulated depreciation and amortization 2,520.973 2,251,579 Net property at cost 2,217,453 2,018,461 Property under capital lease, net of accumulated amortization of $14,890 and $12,657, respectively... 17,682 19,915 Other assets.. 190,981 115,613 Goodwill and tradename, net of amortization 181,524 182,898 Total assets.. $6,599,934 $6,085,700