Module 13 Homework 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. a. Forecast the terminal period values assuming the following terminal period growth rate. Assumption Terminal period growth rate 2% Reported Forecast Horizon Period $ millions 2018 Sales NOPAT NOA 2019 $173,318 23,457 371,601 2020 2021 $183,563 $194,423 $205,935 $218,138 $ 24,644 25,969 27,374 28,862 393,493 416,949 441,813 468,169 2022 Terminal Period 222,501 29,439 477,532 b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) model as of December 31, 2018 using the following assumptions and the information above. Assumptions Discount rate (WACC) 5.70% 7,281.6 million Common shares outstanding Net nonoperating obligations (NNO) $177,717 million Noncontrolling interest $12,357 million ($ millions) Increase in NOA Reported 2018 Forecast Horizon Terminal 2019 2020 2021 2022 Period FCFF (NOPAT - Increase in NOA) Present value of horizon FCFF 21,892 $ 2,752 2,616 x 23,456 $ 2,513 2,228.15 x 24,864 $ 26,356 $ 9,363 2,510 2,095.56 x 2,506 20,076 1,970.08 x Cum. present value of horizon FCFF $ 9,088.62 x Present value of terminal FCFF 512,229.1 x Total firm value 384,662 * Less (plus) NNO Less NCI Firm equity value $ 177,717 12,357 194,587 x Shares outstanding (millions) 7,281.6 Stock price per share $ 26.72 x