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please review the statements and provide the correct balances Question 2 Partially correct Mark 289 out of 26.00 '7 Flag question Estimating Share Value Using

please review the statements and provide the correct balances

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Question 2 Partially correct Mark 289 out of 26.00 '7 Flag question Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 26, 201 1, for Best Buy, Inc. Assume Reported Horizon Period ns) 2011 2012 2013 2014 2015 Terminal Period Sales i $40,023 ' $44,577 i $49,650 i $55,300 $61,592 i $62,208 NOPAT i 1,448 1,628 i 1,777 i 2,009 2,226 i 2,265 NOA i 5,287' 5,891 i 6,545i 7,282 8,101 i 8,214 Answer the following requirements assuming a discount rate (WACC) of 1 1%, a terminal period growth rate of 1%, common shares outstanding of 4105 million, net nonoperating obligations (NNO) of $787 million and noncontrolling interest (NCI) on the balance sheet of $690 million. (a) Estimate the value of a share of Best Buy's common stock using the discounted cash flow (DCF) model as of February 26,2011. Rounding instructions: 0 Round your answers to the nearest whole number except for the discount factors, shares outstanding, and the stock price per share. 0 Round the discount factors to five decimal places, shares outstanding to one decimal place, and the stock price to two decimal places. o Use your rounded answers for subsequent calculations. Do not use negative sigm with any of your answers below. Assume Reported Horizon Period (In millions) 2011 2013 Terminal Period Increasein NOA 1,055 x x 1,296 x 1,430 x 1,383 x 1:ch (NOPAT - increase in NOA) i 0.9009 xi 0.81162 xi 0.73119 x 0.65873 x 0 x Discount factor [1/(1+rw)t] i(round5decimal places) 950.45 xi 0 xi 0 x o x Present value of horizon FCFF i 0 xi 0 xi 0 x 0 x Cum present value ofhorizon FCFF i $ 3,757 x i i Present value ofterminal FCFF i 9,110 x i i Total firm value i 18,163 x i i NNO i 792 X i i NCI i 690 v i i Firm equity value i 3 16,681 x i i l l Shares outstanding (millions) 410.5 v (round one decimal place)i Stock price per share 3 40-64 X (round two decimal places)i

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