Estimating Share Value Using the ROPI Model Following are forecasts of Whole Foods’ sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of September 25, 2016.

$ millions Reported 2016 Horizon Period Terminal 2017 2018 2019 2020 Period Sales. . . . . . . . . . . . . . . . . $15,724 $15,881 $16,199 $16,523 $16,853 $17,022 NOPAT . . . . . . . . . . . . . . . 526 524 535 545 556 562 NOA . . . . . . . . . . . . . . . . . 3,466 3,500 3,570 3,642 3,715 3,752

a. Estimate the value of a share of Whole Foods’ common stock using the residual operating income

(ROPI) model as of September 25, 2016.

b. Whole Foods stock closed at $30.96 on November 18, 2016, the date the 10-K 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?