Estimating Share Value Using the DCF Model Following are forecasts of Target Corporations sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018.

	Reported	Horizon Period				Terminal
$ millions	2018	2019	2020	2021	2022	Period
Sales	$75,356	$79,124	$83,080	$87,234	$91,596	$93,428
NOPAT	3,269	3,402	3,572	3,751	3,939	4,017
NOA	23,020	24,197	25,407	26,677	28,011	28,571

Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63%, common shares outstanding of 517.8 million, and net nonoperating obligations (NNO) of $11,723 million. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of February 2, 2019.

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

		Reported	Forecast Horizon				Terminal
($ millions)		2018	2019	2020	2021	2022	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]			Answer	Answer	Answer	Answer
Present value of horizon FCFF			Answer	Answer	Answer	Answer
Cum. present value of horizon FCFF		Answer
Present value of terminal FCFF		Answer
Total firm value		Answer
NNO		Answer
Firm equity value		Answer
Shares outstanding (millions)		Answer
Stock price per share		Answer