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please answer this question with full description thank you DCF Model Following are forcasts of P&G's sales, net operating profit after tax (NOPAT), and net
please answer this question with full description thank you
DCF Model Following are forcasts of P&G's sales, net operating profit after tax (NOPAT), and net operating assets (NOA). We assume a terminal growth rate of 4%. Reported 2013 2014 In millions Sales growth Sales (unrounded $84.167 Hurizon Period Terminal 2015 2016 2017 Period 4.0% 4.0% 4.0% 4.0% $88,846.69 $92,400.56 $96,096.58 $99,940.44 (885,429.51 X 1.04 (588,846.69 x 1.04 592,400.58 x 104 596,096510 $88,847 $ 92,401 $ 96,097 $ 99,940 $11,817 $ 12,289 $ 12,781 $ 13,292 $99,828 $103,821 $107,974 $112,292 Sales rounded NOPAT NOA 1.5% $85,429.51 $84,167 X 1.015 $85,430 $11,362 $95,989 $84 167 $11.174 $94,305 Use the forecasts above to compute P&G's free cash flows to the firm (FCFF) and an estimate of its stock value using the DCF model. Make the following assumptions: discount rate (WACC) of 7% (Bloomberg estimate 23 of August , 2013), shares outstanding of 2,742.3 million, net nonoperating obligations (NNO) of $25.596 milion, and no controlling interest (NCT) from the balance sheet of $645 million. Please use this to answer questions below. what is the present Value of terminal FCFF? DCF Model Following are forcasts of P&G's sales, net operating profit after tax (NOPAT), and net operating assets (NOA). We assume a terminal growth rate of 4%. Reported 2013 2014 In millions Sales growth Sales (unrounded $84.167 Hurizon Period Terminal 2015 2016 2017 Period 4.0% 4.0% 4.0% 4.0% $88,846.69 $92,400.56 $96,096.58 $99,940.44 (885,429.51 X 1.04 (588,846.69 x 1.04 592,400.58 x 104 596,096510 $88,847 $ 92,401 $ 96,097 $ 99,940 $11,817 $ 12,289 $ 12,781 $ 13,292 $99,828 $103,821 $107,974 $112,292 Sales rounded NOPAT NOA 1.5% $85,429.51 $84,167 X 1.015 $85,430 $11,362 $95,989 $84 167 $11.174 $94,305 Use the forecasts above to compute P&G's free cash flows to the firm (FCFF) and an estimate of its stock value using the DCF model. Make the following assumptions: discount rate (WACC) of 7% (Bloomberg estimate 23 of August , 2013), shares outstanding of 2,742.3 million, net nonoperating obligations (NNO) of $25.596 milion, and no controlling interest (NCT) from the balance sheet of $645 million. Please use this to answer questions below. what is the present Value of terminal FCFFStep by Step Solution
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