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& need help.pdf - Adobe Acrobat Reader DC X File Edit View Sign Window Help Home Tools need help.pdf X (? Sign In 1 /1 + 73.2% Assume following are forecasts of Abercrombie & Fitch's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 29, 2011. Reported Horizon Period (In millions) 2011 2012 2013 2014 2015 Terminal Period Search 'Strikethrough' Sales $ 3,750 $ 4,500 $ 5,400 $ 6,480 $ 7,776 $ 7,853 NOPAT 464 578 686 825 948 954 NOA 1,333 1,612 1,944 2,289 2,780 2.806 Export PDF V Answer the following requirements assuming a discount rate (WACC) of 13.3%, a terminal period growth rate of 1%, common shares outstanding of 86.2 million, and net nonoperating obligations (NNO) of $(255) million (negative NNO reflects net nonoperating assets such as investments rather than net obligations). Edit PDF (a) Estimate the value of a share of Abercrombie & Fitch common stock using the discounted cash flow (DCF) model as of January 29, 2011. (Round your answer to the nearest whole number except for the discount factors, shares outstanding, and the stock price per share. Rounding instructions: Create PDF V Round answers to the nearest whole number unless noted otherwise. . Use your rounded answers for subsequent calculations. Do not use negative signs with any of your answers. = Comment Reported Horizon Period (In millions) 2011 2014 Increase in NOA 2012 2013 Terminal Period 0 FCFF (NOPAT - Increase in NOA) o O o o Discount factor [1 / (1 + [w) ](round 5 decimal places) Combine Files Present value of horizon FCFF Cum present value of horizon FCFF Present value of terminal FCFF Total firm value EDOrganize Pages INNO Firm equity value Shares outstanding (millions) 0 (round one decimal place) Stock price per share 0 (round two decimal places) Compress PDF (b) Assume Abercrombie & Fitch (ANF) stock closed at $77.56 on March 2, 2011. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference? OStock prices are a function of many factors. It is impossible to speculate on the reasons for the difference. Oour stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more pessimistic forecasts or a higher Create, edit and sign PDF discount rate compared to other in vestors' and analysts' model assumptions. forms & agreements OOur stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is overvalued. Stock prices are a function of expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions. OOur stock price estimate is lower than the ANF market price, indicating that we believe that ANF stock is undervalued. Stock prices are a function of Start Free Trial expected NOPAT and NOA, as well as the WACC discount rate. Our lower stock price estimate might be due to more optimistic forecasts or a lower discount rate compared to other investors' and analysts' model assumptions. H Type here to search O M O 9:35 AM 11/15/2020
