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 December 31, 2018, for Humana. Reported Horizon Period $ millions 2018 Sales NOPAT NOA 2019 2020 2021 2022 $56,912 $57,766 $58,632 $59,512 $60,404 2,492 2,542 2,580 2,619 2,658 4,032 4,097 4,158 4,221 4,284 Terminal Period $61,008 2,684 4,327 Answer the following requirements assuming a discount rate (WACC) of 7.8%, a terminal period growth rate of 1%, common shares outstanding of 135.6 million, net nonoperating obligations (NNO) of $(6,129) million, which is negative because Humana's nonoperating assets exceed its nonoperating liabilities, and no noncontrolling interest (NCI) on the balance sheet. (a) Estimate the value of a share of Humana's common stock using the discounted cash flow (DCF) model as of December 31, 2018. Instructions: Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places. Use your rounded answers for subsequent calculations. Use a negative sign with your NNO answer. ($ millions) Reported Forecast Horizon 2018 2019 2020 2021 2022 Terminal Period 65 61 63 2,477 0.92764 2,519 0.86052 2,556 0.79825 x 63 2,595 0.74049 x 43 2,641 2,297.76 2,167.64 2,040.32 1,921.57 Increase in NOA FCFF (NOPAT - Increase in NOA) Discount factor [1/(1+rw)t] Present value of horizon FCFF Cum present value of horizon FCFF $ 8,427.29 Present value of terminal FCFF 29,046.91 x Total firm value 37,474.2 x NNO 6,129 x Firm equity value $ 31,345.2 x Shares outstanding (millions) 135.6 Stock price per share $ 231.15 x