P13-15. Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for AT&T for 2019 through 2022. $ millions Sales... NOPAT NOA Reported 2018 $170,756 20,895 369,039 2019 $181,001 22,082 390,931 Forecast Horizon Period 2020 2021 2022 $191,861 $203,373 $215,576 23,407 24,812 26,300 414,387 439,251 465,607 Required a. Forecast the terminal period values assuming a 2% terminal period growth rate. b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) model as of December 31, 2018; assume a discount rate (WACC) of 5.7%, common shares outstanding of 7,281.6 million, net nonoperating obligations (NNO) of $175,155 million, and noncontrolling interest (NCT) from the balance sheet of $9,795 million. c. AT&T closed at $30.85 on February 20, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? d. If WACC has been 6.2%, what would the valuation estimate have been? What about if WACC has been 5.2%? P13-15. Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for AT&T for 2019 through 2022. $ millions Sales... NOPAT NOA Reported 2018 $170,756 20,895 369,039 2019 $181,001 22,082 390,931 Forecast Horizon Period 2020 2021 2022 $191,861 $203,373 $215,576 23,407 24,812 26,300 414,387 439,251 465,607 Required a. Forecast the terminal period values assuming a 2% terminal period growth rate. b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) model as of December 31, 2018; assume a discount rate (WACC) of 5.7%, common shares outstanding of 7,281.6 million, net nonoperating obligations (NNO) of $175,155 million, and noncontrolling interest (NCT) from the balance sheet of $9,795 million. c. AT&T closed at $30.85 on February 20, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? d. If WACC has been 6.2%, what would the valuation estimate have been? What about if WACC has been 5.2%