Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016

	Reported	Horizon Period				Terminal
$ millions	2016	2017	2018	2019	2020	Period
Sales	$77,118	$78,660	$80,233	$81,838	$83,475	$84,310
NOPAT	3,470	3,540	3,610	3,683	3,756	3,794
NOA	23,135	23,598	24,070	24,551	25,043	25,293

Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million, and net nonoperating obligations (NNO) of $8,488 million. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016.

Instructions:

• Round all answers to the nearest whole number, except for discount factors 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

  		Reported	Forecast Horizon				Terminal
  ($ millions)		2016	2017	2018	2019	2020	Period
  Increase in NOA			Answer	Answer	Answer	Answer	Answer
  FCFF (NOPAT - Increase in NOA)			Answer	Answer	Answer	Answer	Answer
  Discount factor [1/(1+rw)t]			Answer	Answer	Answer	Answer
  Present value of horizon FCFF			Answer	Answer	Answer	Answer
  Cum. present value of horizon FCFF		Answer
  Present value of terminal FCFF		Answer
  Total firm value		Answer
  NNO		Answer
  Firm equity value		Answer
  Shares outstanding (millions)		Answer
  Stock price per share		Answer

  

Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016 Reported Horizon Period Terminal $ millions 2016 2017 2018 2019 2020 Period Sales 577,118 578,560 $80.233 181.838 $83,475 091.310 $ NOPAT 3,470 3,540 3,610 3,683 3,756 3.794 NOA 23,135 23,598 24,070 24,551 25,043 25,293 Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million, and net nonoperating obligations (NNO) of $8,488 million. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016 Instructions: Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5 decimal places, Round stock price per share to two decimal places. . Do not use negative signs with any of your answers. Reported 2016 Forecast Horizon 2018 2019 OX Terminal Period 2017 446 X X UX 0 % 2020 OX OX Ox 0 x DX OX 0* 0 % OX ($ millions) Increase in NOA FCFF INOPAT - Increase in NOA) Discount factor (1/(1+rw/] Present value of horizon FCFF Cum present value of horizon FCFF $ Present value of terminal FCFF Tolal firm value NNO Firm equity value $ OX OX PLEASE BE DONE.pdf A Show All X