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Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2017 for Stellar Stores, Inc.

Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2017 for Stellar Stores, Inc.

Horizon Period

(in millions)

Reported 2017

2018

2019

2020

2021

Terminal Period

Sales

$37,006

$44,777

$54,180

$65,558

$79,325

$80,912

NOPAT

1,292

1,563

1,891

2,288

2,768

2,824

NOA

10,007

102

14,643

17,718

21,439

21,868

Assuming a terminal period growth rate of 2%, a discount rate (WACC) of 8%, common shares outstanding of 814.3 million, and net nonoperating obligations (NNO) of $1,676 million, estimate the value of a share of Stellar common stock using the discounted cash flow (DCF) model as of December 31, 2017.

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