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Following are forecasts of Home Depots sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the

Following are forecasts of Home Depots sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018.

Forecast Horizon Period
Reported Terminal
$ millions 2018 2019 2020 2021 2022 Period
Sales $108,203 $115,777 $123,882 $132,553 $141,832 $144,669
NOPAT 12,073 12,967 13,875 14,846 15,885 16,203
NOA 25,546 27,332 29,245 31,292 33,483 34,152

Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $27,424 million. a. Estimate the value of a share of Home Depot common stock using the residual operating income (ROPI) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places.

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