a. fill in the blanks on the table (above) and use the residual operating income (ROPI) model to estimate the per share value of Darden Restaurant's equity, at May 28, 2017. The companys weighted average cost of capital is 6%. Assume a sales growth rate of 5% for 2018-2021 with a terminal growth rate of 2%. Shares outstanding is 125.4 (M) shares and NNO of $690.3 (M). All numbers are in millions.

b. Darden Resturant's shares closed at $85.83 per share on July 26, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price.

c. As a finanical manager of the company what strategies would you take to increase the residual operating income (ROPI) to increase the value of the firm?

Current Forecast Horizon (Smillions) Terminal Year 2017 2018 2019 2020 2021 Sales (unrounded) Sales (rounded) $7.170.20 $7,528.71 $7.905.15 $8,300.41 $8.715.43 7.170.20 7,528.70 7.905.20 8.300.40 8,715.40 $8,889.74 8,889.70 NOPAT 507.8 NOA 2,792.00 ROPI (NOPAT- [NOABeg Tw]) Discount factor (1/(1 x T)* 1 PV of horizon ROPI Cum PV of horizon ROPI PV of terminal ROPI INOA Total firm value Other adjustments Firm equity value Shares outstanding Stock value per share