Estimating Share Value Using the ROPI Model Following are forecasts of Whole Foods sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of September 25, 2016.

	Reported	Horizon Period
$ millions	2016	2017	2018	2019	2020	Terminal Period
Sales	$15,724	$15,881	$16,199	$16,523	$16,853	$17,022
NOPAT	526	524	535	545	556	562
NOA	3,466	3,500	3,570	3,642	3,715	3,752

Answer the following requirements assuming a discount rate (WACC) of 6%, a terminal period growth rate of 1%, common shares outstanding of 318.3 million, and net nonoperating obligations (NNO) of $242 million. (a) Estimate the value of a share of Whole Foods' common stock using the residual operating income (ROPI) model as of September 25, 2016.

Rounding instructions:

• Round answers to the nearest whole number unless noted otherwise.

• Use your rounded answers for subsequent calculations.

Do not use negative signs with your answers.

	Reported	Horizon Period
($ millions)	2016	2017	2018	2019	2020	Terminal Period
ROPI (NOPAT - [NOABeg rw])
Discount factor [1 / (1 + rw)t ]	(round 5 decimal places)
Present value of horizon ROPI
Com present value of horizon ROPI
Present value of terminal ROPI
NOA
Total firm value
NNO
Firm equity value
Shares outstanding (millions)		(round one decimal place)
Stock price per share		(round two decimal places)