Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011. Refer to the information in the table to answer the following requirements.

Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(255) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations).

(a) Estimate the value of a share of Abercrombie & Fitch common stock using the residual operating income (ROPI) model as of January 29, 2011.

Estimating Share Value Using the ROPI Model Assume following are forecasts of Abercrombie & Fitch's sales, net o Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Sales $3,750 $4,500 $5,400 $ 6,480 $ 7,776 $7,853 NOPAT 464 578 686 825 948 954 NOA 1,333 1,612 1,944 2,289 2,780 2,806 Rounding Instructions: Round answers to the nearest whole number unless noted otherwise. Use your round answers for subsequent calculations. 2012 Terminal Period Horizon Period 2013 332 x 0.779 2014 825 x 0.68756 2015 948 x X 0.60685 354 427 X 520 X 578 X Do not use negative signs with any of your answers. Reported (In millions) 2011 ROPI (NOPAT - [NOABeg x rw]) 401 Discount factor [1/(1+rw)t] (round 5 decimal places) 0.88261 Present value of horizon ROPI Cum present value of horizon ROPI $ 1,494 x Present value of terminal ROPI 3,240 x NOA Total firm value 6,085 X NNO 288 X Firm equity value 6,373 X Shares outstanding (millions) 86.2 (round one decimal place) Stock price per share 73.93 % (round two decimal places) 1,350 X $ $ $