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Can anyone please help me solve this question? Estimating Share Value Using the DCF Model Followtng are forecasted sales. NOPAT, and NOA for AT&T for
Can anyone please help me solve this question?
Estimating Share Value Using the DCF Model Followtng are forecasted sales. NOPAT, and NOA for AT&T for 2019 through 2022 Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Forecast the terminal period values assuming the following terminal period growth rate. Assumption Terminal period g: owth rate Reported Forecast Horizon Period S millions 2018 Sales | $173.318 NOPAT 23,457 NOA 2019 Terminal 2020 2021 2022 Period $183,563 $194,423 $205,935 $218,138' 24,644 25.969 27,374 28,862 393.493 416,949 441,813 468.169 b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) model as of December 31, 2018 using the following assumptions and the information above. Assumptions Discount rate (WACC) Common shares outstanding 5.70% 7.2816 million Net nonoperating obligations (NNO) $177,717 million $12.357 milli0!i Noncontrolling interest Reported 2018 (S millions) Increase In NOA FCFF (NOPAT Increase NOA) Present value of horizon FCFF Cum. presenyyplue of horizon FCFF S Present value of terminal FCFF Total firm value Less( lus) NNO Less NCI Arm equity value Shares outstanding (millions) Stock price per share Forecast Horizon 2019 2020 2021 2022 Terminal Period 01 c. AT&T closed at S3085 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 What about if WACC has been 5.2%? Value 01 Please answer all parts of the question.
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