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Solve correct please every time its wrong.. Estimating Share Value Using the DCF Model Following are forecasts of sales, net operating profit after tax (NOPAT),

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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, 2011, for Best Buy, Inc. Assume Reported Horizon Period (In millions) 2011 2013 2014 2015 Terminal Period 2012 $44,577 Sales $40,023 $49,650 $55,300 $61,592 $62,208 NOPAT 1,448 1,625 1,806 2,014 2,213 2,231 NOA 5,266 5,875 6.553 7,265 8,116 8,197 Answer the following requirements assuming a discount rate (WACC) of 11%, a terminal period growth rate of 1%, common shares outstanding of 410.5 million, net nonoperating obligations (NNO) of $768 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: Round your answers to the nearest whole number except for the discount factors, shares outstanding, and the stock price per share Round the discount factors to five decimal places, shares outstanding to one decimal place, and the stock price to two decimal places Use your rounded answers for subsequent calculations. Do not use negative signs with any of your answers below. (in millions) Assume Reported 2011 Horizon Period 2013 2012 2014 2015 Terminal Period Increase in NOA 113 604x 1,024 0,9009 654 M 1,123 FCFF (NOPAT Increase in NOA) 737 x 1,272 * 0.73119 2,152 (round 5 decimal places) Discount factor (1/(1+rwit] Present value of horizon FCFF 922.52 x 930.08 Cum present value of horizon FCFF $ 3,690.88 x Present value of terminal FCFF 14,317.65 x Total firm value 18,008 53 x 787 x NNO Ox NCI 17.221.53 x Firm equity value 0 Shares outstanding (milions) (round 1decimal place) Dround 2decimal places) Stock price per share 08:162 911.45 M 619 1,407 045873 926

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