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 $2\%$

$\backslash$table$[[,$Reported,Horizon Period,,,,Terminal$],[5$ millions,$2018,2019,2020,2021,2022,$Period,$],[$Sales$,$$$173,318,$$$183,563,$$$194,423,$$$205,935,$$$218,138,$$$,0],[$NOPAT$,23,457,24,644,25,969,27,374,28,862,,0],[$NOA$,371,601,393,493,416,949,441,813,468,169,,0]]$

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.

$\backslash$table$[[$Assumptions$,,],[$Discount rate $($WACC$),5,70\%,],[$Common shares outstanding,$7,281\mathrm{.}6,$million$],[$Net nonoperating obligations $($NNO$),$$$177,717,$million$],[$Noncontrolling interest,$$12,357,$million$]]$

$\backslash$table$[[(5$ millions$),\backslash$table$[[$Reported$],[2018]],,\backslash$table$[[$Forecast Horizon$],[2019]],,2020,,2021,2022,\backslash$table$[[$Terminal$],[$Period$]]],[$Increase in NOA,,,$0,$$$,0,$$$,0$$$,0,$$