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Estimating Share Value Using the DCF ModelFollowing are forecasts of sales, net operating profit after tax ( NOPAT ) , and net operating assets (
Estimating Share Value Using the DCF ModelFollowing are forecasts of sales, net operating profit after tax NOPAT and net operating assets NOA as of December for Humana.Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.ReportedForecast Horizon PeriodTerminalmillionsSalesNOPATNOA$$$$$Period$Answer the following requirements with the following assumptions:Answer the following requirements with the following assumptions:AssumptionsTerminal period growth rateDiscount rate WACCCommon shares outstanding millionNet nonoperating obligations NNO$ millionNoncontrolling interest$ millionNNO is negative because Humana's nonoperating assets exceed its nonoperating liabilities.a Estimate the value of a share of Humana's common stock using the discounted cash flow DCF model as of December Forecast HorizonTerminalE$ millionsReportedIncrease in NOAFCFF NOPAT Increase in NOAPresent value of horizon FCFFCum. present value of horizon FCFF $Present value of terminal FCFFTotal firm valueNNOFirm equity valueShares outstanding millionsStock price per share
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