Consolidated Income Statements (\$ Millions) Sales Cost of Goods Sold Gross Profit Demand Creation expense Operating Overhead expense Total selling \& Administrative expenses \begin{tabular}{rr} 31-May-20 & 31-May-21 \\ $39,117 & $36,397 \\ 21643 & 20,441 \\ \hline$17,474 & $15,956 \\ 3,753 & 3,577 \\ 8,949 & 7,934 \\ \hline$12,702 & $11,511 \\ 49 & 54 \\ 78 & 66 \\ \hline$4,801 & 4,325 \\ 772 & 2,392 \\ \hline$4,029 & $1,933 \end{tabular} i. Compute net operating (NOA) and net nonoperating obligations (NNO) for 2021. The company's NNO is negative because cash exceeds debt. ii. Compute net operating profit after tax (NOPAT) for 2021 , assuming a federal and state statutory tax rate of 22%. iii. Use the parsimonious forecast method shown in the Analysis Insight box on pages 14-5 and Exhibit 14.2 to forecast sales, NOPAT, and NOA for 2022 through 2025 using the following assumptions: iv. Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. v. Estimate the value of a share of Nike common stock using the residential operating income (ROPI) model as of May 31, 2021. For simplicity, prepare your forecast in \$ Millions. vi. NCAT's stock is currently trading at $72 as of the date of this valuation. Articulate a comparison of the intrinsic share price you generate to the current mart price per share. Using Critical thinking, what may have caused this difference, if any? As an equity analyst, what would your investment recommendation be based on your analysis? Consolidated Income Statements (\$ Millions) Sales Cost of Goods Sold Gross Profit Demand Creation expense Operating Overhead expense Total selling \& Administrative expenses \begin{tabular}{rr} 31-May-20 & 31-May-21 \\ $39,117 & $36,397 \\ 21643 & 20,441 \\ \hline$17,474 & $15,956 \\ 3,753 & 3,577 \\ 8,949 & 7,934 \\ \hline$12,702 & $11,511 \\ 49 & 54 \\ 78 & 66 \\ \hline$4,801 & 4,325 \\ 772 & 2,392 \\ \hline$4,029 & $1,933 \end{tabular} i. Compute net operating (NOA) and net nonoperating obligations (NNO) for 2021. The company's NNO is negative because cash exceeds debt. ii. Compute net operating profit after tax (NOPAT) for 2021 , assuming a federal and state statutory tax rate of 22%. iii. Use the parsimonious forecast method shown in the Analysis Insight box on pages 14-5 and Exhibit 14.2 to forecast sales, NOPAT, and NOA for 2022 through 2025 using the following assumptions: iv. Forecast the terminal period value assuming a 2% terminal period growth and using the NOPM and NOAT assumptions above. v. Estimate the value of a share of Nike common stock using the residential operating income (ROPI) model as of May 31, 2021. For simplicity, prepare your forecast in \$ Millions. vi. NCAT's stock is currently trading at $72 as of the date of this valuation. Articulate a comparison of the intrinsic share price you generate to the current mart price per share. Using Critical thinking, what may have caused this difference, if any? As an equity analyst, what would your investment recommendation be based on your analysis
