Problem 3 The table below presents forecast for sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 31, 2016, for Walmart Stores, Inc. Answer the questions assuming terminal growth of 1%, discount rate of 7% 3,144 million shares outstanding, net non-operating obligations (NNO) of $41,329 million, and non-controlling interest on the balance sheet of $3,065 million. a. Estimate the value of a share of Walmart common stock using the DCF model as of January 31, 2016. b. Walmart stock closed at $68.80 on March 30, 2016, the date the 10-K was filed with the SEC. How does your valuation estimate compare with the closing price? 2017 Sales NOPAT NOA Reported 2016 482,130 16,634 124,940 486,951 17,043 126,186 2018 491,821 1 7,214 127,448 2019 496,739 17,386 128,722 2020 501,706 17,560 130,009 2021 506,723 17,735 131,309