Using the financial statement data provided along with the following assumptions, estimate the value (per share) of the companys common stock. Note that the data and an Excel template^* you are encouraged to use.

^*If the financial statement data are entered correctly in the template for Homework Assignment 3, the data will not need to be reentered for Homework Assignment 4.

• Sales are expected to continue to grow at a rate of 6% per year for the next four years and 2% per year thereafter.
• The net operating profit margin is expected to remain at the same level as in the prior year.
• The percentage of year-end net operating assets to sales is expected to remain at the same level as in the prior year.
• The differential between nonoperating assets and nonoperating liabilities is expected to remain at the same amount as in the prior year.
• The company faces a weighted average cost of capital of 9.5%.

Based on your projection of the implied value of the companys stock and given its current stock price of $59.40, would you be inclined to recommend purchasing or selling the companys stock?

(millions)	2020	2019		(millions)	2020	2019
Cash & equivalents	$5,683	$4,059		Sales	$256,776	$194,579
Marketable securities	2,373	2,522		Less: Cost of goods sold	158,719	156,447
Accounts receivable, net	19,617	17,631		Gross profit	98,057	38,132
Inventories	15,516	16,450		Less: Selling, gen. & admin. exp.	81,699	25,244
Other current assets	7,113	4,581		Less: Depreciation & amort. exp.	4,371	2,718
Total current assets	50,302	45,243		Operating profit (EBIT)	11,987	10,170
Property, plant, & equipment, gross	28,934	26,869		Less: Interest expense	3,035	2,619
Less: Accumulated depreciation	16,890	15,520		Other income (expense)	454	6,074
Property, plant, & equipment, net	12,044	11,349		Gain/(loss) on sale of assets	79	0
Right-of-use leased assets	20,860			Earnings before tax	9,485	13,625
Other long-term investments	56,744	56,140		Less: Income tax expense	2,366	2,002
Other noncurrent assets	82,499	83,724		Net income	$7,119	$11,623
Total assets	$222,449	$196,456
Current portion of long-term debt	$4,364	$1,985		Miscellaneous data	2020
Current lease liabilities	1,934			Depreciation expense	$4,371
Accounts payable	23,093	20,316		Amortization expense	$0
Taxes payable	1,830	1,939		Cash flow from operating activities	$13,924
Other accrued expenses	12,133	10,711		Capital expenditures made	$5,525
Deferred revenue	7,870	6,586		Dividends paid	$4,366
Other current liabilities	2,079	2,472		Common shares outstanding	1,304
Total current liabilities	53,303	44,009		Current stock price	$59.40
Long-term debt	64,699	71,444
Long-term lease liabilities	18,926
Deferred taxes	8,294	7,677
Other long-term liabilities	14,057	14,783
Total liabilities	159,279	137,913
Com. stock and add. paid-in capital	45,816	45,317
Retained earnings	46,283	41,136
Less: Treasury stock	28,929	27,910
Total equity	63,170	58,543
Total liabilities and equity	$222,449	$196,456