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Following are forecasts of sales, NOPAT, NOA as of 12/31/20 for Day-Brite. Assuming a WACC of 6.5%, terminal growth rate of 1%, common shares outstanding

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Following are forecasts of sales, NOPAT, NOA as of 12/31/20 for Day-Brite. Assuming a WACC of 6.5%, terminal growth rate of 1%, common shares outstanding of 145.5M, and NNO of $6.2M a. Estimate the value of a share of Day-Brite's common stock using the DCF method as of 12/31/20. b. Day-Brite stock closed at $425.50 on 2/21/19, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What action might you take? Forecast Horizon (5 millions) Sales 2020 Actual 54,806 2021 55,629 2022 56,463 2023 57,310 2024 58,169 Terminal Period 58,751 NOPAT 2,400 2,448 2,485 2,522 2,560 2,585 NOA 3,883 3.945 4,004 4,065 4,125 4.167

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