1. Following are the financial statement numbers for fiscal year 2019. (Smillions) Sales (rounded) NOPAT NOA Current 2019 8,552 492 4,685 2020 9.142 530 4,996 Forecast Horizon 2021 2022 9,773 567 5,340 10.447 606 5,709 2023 11.168 648 6,103 Terminal Year 11,503 667 6,286 Required: a Use the residual operating income (ROPI) model to estimate the per share value of Darden Restaurant's equity, at May 26, 2019. The company's weighted average cost of capital is 8% and terminal growth rate is expected to be 3%. Net nonoperating obligations (NNO) NNO is $2,625 (in millions). Shares outstanding in millions 130.3. (Smillions) NOPAT NOA 8% of NOA NOPAT 8% of NOA Beginning of Year ROPI [NOPAT-(NOABcg* 080] Discount factor [1/(18] PV of horizon ROPI Cum PV of horizon ROPI PV of terminal ROPI NOA Total firm value Less NNO Firm equity value Shares outstanding (millions) Stock value per share Current 2019 492 4,685 375 492 $569 2,631 4,685 7,885 2,625 5,260 130.3 $40.37 2020 530 4,996 400 530 375 155 0.92593 144 Forecast Horizon 2021 2022 567 5,340 427 567 400 167 0.85734 143 606 5,709 457 606 427 179 0.79383 142 2023 648 6,103 488 648 457 191 0.73503 140 Terminal Year 667 6,285 503 Rounded sales were used for calculation of NOPAT and NOA. Forecasted NOA and ROPI, Cumulative PV of horizon ROPI and PV of terminal ROPI were rounded to the nearest decimal place. Unrounded discount factors were used in calculations. Students' answers may vary due to rounding. 667 488 179