Following are forecasts of Illinois Tool Works Inc. sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2018.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

	Reported	Forecast Horizon Period	Terminal
$ millions	2018	2019	2020	2021	2022	Period
Sales	$8,861	$9,392	$9,956	$10,553	$11,186	$11,410
NOPAT	1,627	1,728	1,832	1,942	2,058	2,099
NOA	5,677	6,017	6,378	6,761	7,166	7,310

Answer the following requirements with the following assumptions:

Assumptions
Terminal period growth rate	2%
Discount rate (WACC)	7.35%
Common shares outstanding	197.00	million
Net nonoperating obligations (NNO)	$3,722	million

(a) Estimate the value of a share of ITWs common stock using the discounted cash flow (DCF) model as of December 31, 2018.

		Reported	Forecast Horizon	Terminal
	($ millions)	2018	2019	2020	2021	2022	Period
	Increase in NOA		Answer	Answer	Answer	Answer	Answer
	FCFF (NOPAT - Increase in NOA)		Answer	Answer	Answer	Answer	Answer
	Present value of horizon FCFF		Answer	Answer	Answer	Answer
	Cum. present value of horizon FCFF	Answer
	Present value of terminal FCFF	Answer
	Total firm value	Answer
	NNO	Answer
	Firm equity value	Answer
	Shares outstanding (millions)	Answer
	Stock price per share	Answer