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Estimating Share Value Using the ROPI Model Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 31, 2016, for Wal-Mart Stores, Inc. Reported Horizon Period Terminal $ millions 2016 2017 2018 2019 2020 Period Sales $482,130 $486,951 $491,821 $496,739 $501,706 $506,723 NOPAT 16,634 17,043 17,214 17,386 17,560 17,735 NOA 124,940 126,186 127,448 128,722 130,009 131,309 Answer the following requirements assuming a discount rate (WACC) of 7%, a terminal period growth rate of 1%, common shares outstanding of 3,144 million, net nonoperating obligations (NNO) of $41,329 million, and noncontrolling interest (NCI) on the balance sheet of $3,065 million. (a) Estimate the value of a share of Walmart common stock using the residual operating income (ROPI) model as of January 31, 2016. Rounding Instructions: Round your answer to the nearest whole number except for the discount factors and the stock price per share. Round the discount factors to five decimal places and the stock price to two decimal places. Use your rounded answers for subsequent calculations. Do not use negative signs with any of your answers below. Forcast Horizon Terminal Period 8,634 2018 8,381 0.87344 7,320 2019 8,465 0.8163 6,910 2020 8,549 0.7629 6,522 Reported WMT ($ millions) 2016 2017 ROPI (NOPAT - [NOABeg x rw]) 8,297 Discount factor [1/(1+rw)t] (round 5 decimal places) 0.93458 Present value of horizon ROPI 7,754 Cum present value of horizon ROPI $ 28,506 Present value of terminal ROPI 10,936| NOA 124,940 Total firm value 263,232 NNO 41,329 NCI 3,065 Firm equity value $ 218,838 Shares outstanding (millions) 3,144 Stock price per share $ 69.6 ~ (round two decimal places)