Estimating Share Value Using the DCF Model Following 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 growth rate 2% Reported Forecast Horizon Period Terminal millions Sales NOPAT NOA 2018 2019 $173,560 2020 2021 $183,805 $194,665 $206,177 $218,380 $ 2022 Period 23,699 371,843 24,886 26,211 27,616 29,104 393,735 417,191 442,055 468,411 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% 7,281.6 million Net nonoperating obligations (NNO) $177,959 million Noncontrolling interest ($ 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) Stock price per share $ $12,599 million Forecast Reported Horizon Terminal 2018 2019 2020 2021 2022 Period $ $ $ $ $ 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 What about if WACC has been 5.2%? Value