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I need help on letter E please! I am asking for letter within the picture to be answered please. Relevant information from letters A-D are
I need help on letter E please!
I am asking for letter within the picture to be answered please. Relevant information from letters A-D are all correct in their boxes, but E is not.
Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022. Forecast Horizon Period Colgate Palmolive (CL) Reported Smillions 2018 2019 2020 2021 2022 Sales $15,544 516,010 $16,491 516,985 $17.495 NOPAT 2,737 2,818 2902 2.989 3,079 NOA 5.837 6,012 6,193 6.378 6,570 Required a. Forecast the terminal period values assuming a 1% terminal period growth for all three model inputs, that is Sales, NOPAT, and NOA. Note: Round your answers to the nearest whole dollar, Sales 5 17,670 NOPATS 3,110 NOAS 6,636 b. Estimate the value of a share of Colgate-Palmolive common stock using the discounted cash flow (DC# model; assume a discount rate (WACC) of 5,7%, common shares outstanding of 862.9 million, net nonoperating obligations (NNO) of 55,640 million and noncontrolling interest (NCE) from the balance sheet of 5299 million Note: Round your final answer to two decimal places (for example round $15.555 to $15.56). Stock price per share: $ 644 Colgate-Palmolive's stock closed at $66.70 on February 21, 2019, the date the Form 10-K was filed with the SEC. How does your valuatio estimate compare with this closing price? Stock price is overvalued d. The forecasts you completed assumed a terminal growth rate of 1% What if the terminal rate had been 2%. What would your estimated stock price have been? Note: Round your final answer to two decimal places (for example, round $15.555 to $15.56), Scock price per share: 92.54 What would WACC have to be to warrant the actual stock price on February 21, 2019? Note: Round percentage to two decimal places (for example, round 15555% to 15.56%) WACC 57 Step by Step Solution
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