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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. Terminal Reported 5 millions 2018 Sales NOPAT NOA Horizon Period 2019 2020 2021 2022 $75,356 $79,124 $83,000 $87,234 591,596 Period $93,428 3269 3,402 3.572 3,751 3,939 4,017 23.020 24,197 25.407 26,677 28,011 28.5711 Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63% common shares outstanding of 517,8 million, and net nonoperating obligations (NNO) of $11,723 million. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of February 2, 2019. Instructions: Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. ) Round discount factors to 5 decimal places Round stock price per share to two decimal places. Do not use negative signs with any of your answers. (5 millions) Increase in NOA FCFF (NOPAT-Increase in NOA) Discount factor [11] Present value of horizon FCFF Cum present value of horizon FCFF S Present value of terminal FCFF Total firm value NNO Firm equity value Shares outstanding (milions) | Stock price per share $ Reported Forecast Horizon Terminal 2018 2019 2020 2021 2022 Period
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