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	Answer	Answer	Answer	Answer
FCFF (NOPAT - Increase in NOA)		Answer	Answer	Answer	Answer	Answer
Discount factor [1/(1+rw)t]	(round 5 decimal places)	Answer	Answer	Answer	Answer
Present value of horizon FCFF		Answer	Answer	Answer	Answer
present value of horizon FCFF	Answer
Present value of terminal FCFF	Answer
Total firm value	Answer
NNO	Answer
NCI	Answer
Firm equity value	Answer
Shares outstanding (millions)	Answer	(round one decimal place)
Stock price per share	Answer	(round two decimal places)