WWII Plane CRASHED in FL, Just... O Support IVy JUUSCipions QFIse pot Estimating Share Value Using the ROPI Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018. Reported Horizon Period Terminal S millions 2018 2019 2020 2021 2022 Period Sales $75,356 $79,124 $83,080 $87,234 $91,596 $93,428 NOPAT 3,939 23,020 24,197 25,407 26,677 28,011 3,269 3,402 3,572 3,751 4,017 NOA 28,571 Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63%, common shares outstanding of 517.8 million, and net nonoperating obligation (NNO) of $11,723 million Estimate the value of a share of Target common stock using the residual operating income (ROPI) model as of February 2, 2019. Instructions: • Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. • Round discount factors to 5 decimal places. • Round stock price per share to two decimal places. • Do not use negative signs with any of your answers. Reported 2018 Forecast Horizon Terminal (S millions) 2019 2020 2021 2022 Period ROPI (NOPAT - [NOABeg x rw) Discount factor [1/(1+rw)t] Present value of horizon ROPI Cum present value of horizon ROPI S Present value of terminal ROPI NOA Total firm value NNO Firm equity value Shares outstanding (millions) Stock price per share %24
WWII Plane CRASHED in FL, Just... O Support IVy JUUSCipions QFIse pot Estimating Share Value Using the ROPI Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018. Reported Horizon Period Terminal S millions 2018 2019 2020 2021 2022 Period Sales $75,356 $79,124 $83,080 $87,234 $91,596 $93,428 NOPAT 3,939 23,020 24,197 25,407 26,677 28,011 3,269 3,402 3,572 3,751 4,017 NOA 28,571 Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63%, common shares outstanding of 517.8 million, and net nonoperating obligation (NNO) of $11,723 million Estimate the value of a share of Target common stock using the residual operating income (ROPI) model as of February 2, 2019. Instructions: • Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share. • Round discount factors to 5 decimal places. • Round stock price per share to two decimal places. • Do not use negative signs with any of your answers. Reported 2018 Forecast Horizon Terminal (S millions) 2019 2020 2021 2022 Period ROPI (NOPAT - [NOABeg x rw) Discount factor [1/(1+rw)t] Present value of horizon ROPI Cum present value of horizon ROPI S Present value of terminal ROPI NOA Total firm value NNO Firm equity value Shares outstanding (millions) Stock price per share %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![WWII Plane CRASHED in FL, Just.
Estimating Share Value Using the ROPI Model
Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018.
O Support
My Subscripions
EISC poup
Reported
Horizon Period
Terminal
S millions
2018
2019
2020
2021
2022
$75,356 $79,124 $83,080 $87,234 $91,596
Period
Sales
$93,428
NOPAT
3,269
3,402
3,572
3,751
3,939
4,017
NOA
23,020 24,197 25,407
26,677
28,011
28,571
Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63%, common shares outstanding of 517.8 million, and net nonoperating obligations
(NNO) of $11,723 million
Estimate the value of a share of Target common stock using the residual operating income (ROPI) model as of February 2, 2019.
Instructions:
• Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share.
• Round discount factors to 5 decimal places.
• Round stock price per share to two decimal places.
• Do not use negative signs with any of your answers.
Reported
Forecast Horizon
Terminal
($ millions)
ROPI (NOPAT - [NOABeg x rw])
2018
2019
2020
2021
2022
Period
Discount factor [1/(1+rw)t]
Present value of horizon ROPI
Cum present value of horizon ROPI $
Present value of terminal ROPI
NOA
Total firm value
NNO
Firm equity value
Shares outstanding (millions)
Stock price per share
1-KSB-496-69....docx
E Firefox 78.9.0esr.dmg
A 212935 1098t fo...pdf
A IMG 7609.jpg
GA2 Spreadsheet.xlsx
Show All
MacBook Air
888](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44b0f74e-c602-4978-a736-701fbc7d130e%2F2b789dbf-c654-4829-a4e5-92fc1d516491%2F4xi9b8b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:WWII Plane CRASHED in FL, Just.
Estimating Share Value Using the ROPI Model
Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 2, 2019, which we label fiscal year 2018.
O Support
My Subscripions
EISC poup
Reported
Horizon Period
Terminal
S millions
2018
2019
2020
2021
2022
$75,356 $79,124 $83,080 $87,234 $91,596
Period
Sales
$93,428
NOPAT
3,269
3,402
3,572
3,751
3,939
4,017
NOA
23,020 24,197 25,407
26,677
28,011
28,571
Answer the following requirements assuming a terminal period growth rate of 2%, a discount rate (WACC) of 7.63%, common shares outstanding of 517.8 million, and net nonoperating obligations
(NNO) of $11,723 million
Estimate the value of a share of Target common stock using the residual operating income (ROPI) model as of February 2, 2019.
Instructions:
• Round all answers to the nearest whole number, except for discount factors, shares outstanding (do not round), and stock price per share.
• Round discount factors to 5 decimal places.
• Round stock price per share to two decimal places.
• Do not use negative signs with any of your answers.
Reported
Forecast Horizon
Terminal
($ millions)
ROPI (NOPAT - [NOABeg x rw])
2018
2019
2020
2021
2022
Period
Discount factor [1/(1+rw)t]
Present value of horizon ROPI
Cum present value of horizon ROPI $
Present value of terminal ROPI
NOA
Total firm value
NNO
Firm equity value
Shares outstanding (millions)
Stock price per share
1-KSB-496-69....docx
E Firefox 78.9.0esr.dmg
A 212935 1098t fo...pdf
A IMG 7609.jpg
GA2 Spreadsheet.xlsx
Show All
MacBook Air
888
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