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 $104,957 $112,304 $120,166 $128,576 $137,577 $140,329 NOPAT 11,711 12,578 13,459 14,401 15,408 15,717 NOA 24,780 26,512 28,368 30,353 32,479 33,127 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 $26,601 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

Estimating Share Value Using the ROPI Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019 , which the company labels fiscal 2018. 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. Stock price per share: $ b. Home Depot stock closed at $184.36 on March 28,2019 , the date the Form 10 -K was filed with the SEC. How does your valuation estimate compare with this closing price