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help needed with a - e! Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022. Required a. Forecast the terminal
help needed with a - e!
Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022. Required a. Forecast the terminal period values for Sales, NOPAT, and NOA, assuming a 1% terminal period growth rate. b. Estimate the value of a share of Colgate-Palmolive common stock using the residual operating income (ROPI) model. Assume a discount rate (WACC) of 5.7%, common shares outstanding of 862.9mil lion, net nonoperating obligations (NNO) of $5,640 million, and noncontrolling interest (NCI) from the balance sheet of $299 million. c. Colgate-Palmolive stock closed at $66.70 on February 21, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference? What investment decision is suggested from your results? d. The forecasts assumed a terminal growth rate of 1%. If the terminal growth rate had been 2%, what would the estimated stock price have been? e. What would WACC need to be to warrant the actual stock price on February 21, 2019 Step by Step Solution
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