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Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA)

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Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016 Reported Horizon Period Terminal S millions 2019 2020 Period 201 $73.341 $74808 $76.304 $77830 $79387 3,300 2017 2018 Sales $80,181 NOPAT 3.366 3,434 3.502 35725 3,608 NOA 22.002 22.442 22.891 23349 23,816 24,054 Answer the folowing requirements assuming a terminal period growth rate of 1% , a discount rate (WACC) of 6%, common shares outstanding of 602 million, an net nonoperating obligations (NNO) of $8,488 million. a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016. Instructions Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5.decimal places Round stock price per share to two decimal.places . Do not use.negative signs with ary of your answers Reported Forecast Horizen Terminal (S millions) 2016 2017 2018 2019 2020 Period 440 449 458 467 Increase in NOA FCFF INOPAT-increase in NOA) Discount factor [1rwi Present value of horizon FCF C 0 0 Cum present value of horion FCFF S Present value of terminal FC Total firm value NNO Firm equity value Shares outstanding mllions) Stock price per share 0

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