Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2013.

	Current	Forecast Horizon					Terminal Year
($ millions)	2013	2014	2015	2016	2017
Total revenues	72,596	75,645	78,822	82,133		85,582	88,150
Net operating profit after tax (NOPAT)	2,680	2,799	2,916	3,039	3,167		3,262
Net operating assets (NOA)	29,318	30,502	31,783	33,118	34,509		35,544

Forecast assumptions and other financial information for Target are as follows:

Revenue growth	4.2%
Net operating profit margin (NOPM)	3.7%
Net operating asset turnover (NOAT)	2.48
Terminal growth rate	3%
Discount rate	6%
Shares outstanding in millions	633.2
Stockholders' equity	$16,231
Net nonoperating obligations (NNO)	$13,087

Required:

a. Use the discounted free cash flow (DCFF) model to estimate the value of Targets equity, per share at fiscal year-end 2013.

b. Target Corp. shares closed at $56.64 per share at fiscal year-end 2013. How does your valuation compare with this closing price?