Assumption Terminal period growth rate 2% 2019 $184,168 $195,028 $206,540 $218,743 S Reported Forecast Horizon Period $ millions 2018 2020 2021 2022 Sales NOPAT NOA $173,923 24,062 372,206 25,249 26,574 27.979 29,467 394,098 417,554 442,418 468,774) Terminal Period 0 0 0 b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) model as of December the following assumptions and the information above. Assumptions Discount rate (WACC) Common shares outstanding 5.70% 7,281.6 million Net nonoperating obligations (NNO) $178,322 million Noncontrolling interest ($ millions) Increase in NOA FCFF (NOPAT-Increase in NOA) Present value of horizon FCFF Cum. present value of horizon FCFF $ Present value of terminal FCFF Total firm value Less (plus) NNO Less NCI Firm equity value Shares outstanding (millions) $12,962 million Reported 2018 Forecast Horizon 2019 2020 2021 2022 0 $ 0 0 000 0 $ 0 $ 0 0 0 0 0 0 0 0 0 Less (plus) NNO Less NCI 0 0 Firm equity value $ 0 Shares outstanding (millions) 0 Stock price per share 0 c. AT&T closed at $30.85 on February 20, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? d. If WACC has been 6.2%, what would the valuation estimate have been? Value 0 What about if WACC has been 5.2% ? Value 0