9. Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2011. Current 2011 Forecast Horizon 2013 2014 Terminal Year 2012 ($ millions) 2015 Total revenues 69,865 72,450 75,131 77,910 80,793 83,217 3,483 Net operating profit after tax (NOPAT) 3,623 3,757 3,896 4,040 4,161 32,510 Net operating assets (NOA) 33,698 34,945 36,237 37,578 38,706 Forecast assumptions and other financial information for Target are as follows: Revenue growth Net operating profit margin (NOPM) Net operating asset turnover (NOAT) Terminal growth rate Discount rate Shares outstanding in millions Stockholders' equity Net nonoperating obligations (NNO) 3.7% 5.0% 2.15 3% 5% 669.3 $15,821 $16,689 Required: a. Use the discounted free cash flow (DCFF) model to estimate the value of Target's equity, per share at fiscal year-end 2011. b. Target Corp. shares closed at $50.05 per share at fiscal year-end 2011. How does your valuation compare with this closing price? 10. Consider the following in relation to the (DCF) model: a. What do positive free cash flows to the firm imply? b. What do negative free cash flows to the firm imply? C. Is it possible for a company to be experiencing positive earnings while having negative cash flows? Explain