Estimating Share Value Using the ROPI 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 Terminal $ millions 2018 2019 2020 2021 2022 Period Sales $56,912 $57,766 $58,632 $59,512 $60,404 $61,008 NOPAT 2,492 2,542 2,580 2,619 2,658 2,684 NOA 4,032 4,097 4,158 4,221 4,284 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 $(6,129) million, which is negative because Humana's nonoperating assets exceed its nonoperating liabilities, and no noncontrolling interest (NCI) on the balance sheet. (a) Estimate the value of a share of common stock using the residual operating income (ROPI) model as of December 31, 2018. Instructions: Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places. Use your rounded answers for subsequent calculations. Use a negative sign with your NNO answer. Reported Forcast Horizon Terminal Period 2018 2019 2020 2021 2022 65 X 61 x 63 x 63 X 43 X 0 X 0 x 0 X 0 X ($ millions) ROPI (NOPAT - [NOABeg * rw]) Discount factor [1/(1+rw)t] Present value of horizon ROPI Cum present value of horizon ROPI $ Present value of terminal ROPI NOA 0 x 0 x 0 x 0 x 0 x 0 x 0 X Total firm value 0 x NNO 0 x $ 0 x Firm equity value Shares outstanding (millions) Stock price per share 0 x TA 0 %