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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 $425.50 on 2/21/19, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What action might you take? Forecast Horizon ($ millions) 2020 Actual 2021 2022 2023 2024 Terminal Period Sales 54,806 55,629 56,463 57,310 58,169 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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