Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022.

		Forecast Horizon Period
Colgate Palmolive (CL)	Reported
$ millions	2018	2019	2020	2021	2022
Sales	$14,611	$15,049	$15,502	$15,966	$16,445
NOPAT	2,573	2,649	2,728	2,810	2,894
NOA	5,487	5,651	5,821	5,995	6,176

Required a. Forecast the terminal period values assuming a 1% terminal period growth for all three model inputs, that is Sales, NOPAT, and NOA. Note: Round your answers to the nearest whole dollar. Sales

NOPAT

NOA

b. Estimate the value of a share of Colgate-Palmolive common stock using the discounted cash flow (DCF) model; assume a discount rate (WACC) of 5.7%, common shares outstanding of 862.9 million, net nonoperating obligations (NNO) of $5,302 million, and noncontrolling interest (NCI) from the balance sheet of $281 million. Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56). Stock price per share: $Answer

c. Colgate-Palmolives stock closed at $62.70 on February 21, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? Answer: d. The forecasts you completed assumed a terminal growth rate of 1%. What if the terminal rate had been 2%. What would your estimated stock price have been? Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56). Stock price per share: $Answer

e. What would WACC have to be to warrant the actual stock price on February 21, 2019? Note: Round percentage to two decimal places (for example, round 15.555% to 15.56%). WACC