Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA...
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Accounting
Estimating Share Value Using the DCF Model
Following are forecasted sales, NOPAT, and NOA for ColgatePalmolive Company for through
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
a Forecast the terminal period values assuming the following terminal period growth rate.
Assumption
b Estimate the value of a share of ColgatePalmolive common stock using the discounted cash flow DCF model using the following assumptions and the information above.
c ColgatePalmolive's stock closed at $ on February the date the Form K was filed with the SEC. How does your valuation estimate compare with this closing price?
d The forecasts you completed assumed a terminal growth rate of What if the terminal rate had been What would your estimated stock price have been?
e What would WACC have to be to warrant the actual stock price on February
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