Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 26, 2011, for Best Buy, Inc.

	Assume Reported	Horizon Period
(In millions)	2011	2012	2013	2014	2015	Terminal Period
Sales	$40,023	$44,577	$49,650	$55,300	$61,592	$62,208
NOPAT	1,448	1,594	1,781	1,990	2,240	2,236
NOA	5,256	5,867	6,544	7,299	8,125	8,194

Answer the following requirements assuming a discount rate (WACC) of 11%, a terminal period growth rate of 1%, common shares outstanding of 410.5 million, net nonoperating obligations (NNO) of $772 million and noncontrolling interest (NCI) on the balance sheet of $690 million. (a) Estimate the value of a share of Best Buy's common stock using the discounted cash flow (DCF) model as of February 26, 2011.

Rounding instructions:

• Round your answers to the nearest whole number except for the discount factors, shares outstanding, and the stock price per share.
• Round the discount factors to five decimal places, shares outstanding to one decimal place, and the stock price to two decimal places.
• Use your rounded answers for subsequent calculations.

Do not use negative signs with any of your answers below.

	Assume Reported	Horizon Period
(In millions)	2011	2012	2013	2014	2015	Terminal Period
Increase in NOA		Answer 611	Answer 677	Answer 755	Answer 826	Answer 69
FCFF (NOPAT - Increase in NOA)		Answer 983	Answer 1104	Answer 1235	Answer 1414	Answer 2167
Discount factor [1/(1+rw)t]	(round 5 decimal places)	Answer 0.9009	Answer 0.8116	Answer 0.7312	Answer 0.6587
Present value of horizon FCFF		Answer 888.6	Answer 896	Answer 903.03	Answer 931.4
Cum present value of horizon FCFF	Answer 3616
Present value of terminal FCFF	Answer 32897
Total firm value	Answer 36513