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Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which
Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 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 $ millions 2018 Sales NOPAI NOA $75,956 3,269 23.620 2019 Terminal 2020 2021 2022 Period $79,124 $83,680 $87,234 $92,196 $93,428 4,002 3,572 4,351 3,939 4,617 24,197 26,007 26,677 28,611 28,571 Answer the following requirements with the following assumptions: Assumptions Terminal period growth rate 2% Discount rate (WACC) 7.63% Common shares outstanding 517.80 million Net nonoperating obligations (NNO) $12,323 million Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of February 2, 2019. Reported Forecast Horizon Terminal ($ millions) 2018 2019 2020 2021 2022 Period Increase in NOA $ $ 0 $ 0 $ 0 $ 0 FCFF (NOPAT Increase in NOA) Present value of horizon FCFF 0 0 0 0 0 0 0 0 0 Cum. present value of horizon FCFF S 0 Present value of terminal FCFF 0 Total firm value 0 NNO 0 Firm equity value 0 Shares outstanding (millions) 0 Stock price per share 0
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