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Estimating share value using the DCF model

Following are forecast of target Corporation's sales, net operating profit after tax (NOPAT), and net oparing asset (NOA) as January 30, 2016.

Businesscourse top-3729319cmid17385&croposat Return to course Reported on Period Terminal 5 millions 2016 2017 18 2019 2020 Period Sales 573.785 SS5.756 57.301 579.857 580,666 NOPA 2312 3524 2630 NOR 21.45 2157222.309 22.755 23.210 23.03 My Subscriptions Sara Answer the following requirements assuming a terminal period growth rate of 1%, a discount of common shares outstanding of 602 milion and retroperiton 58.488 million a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016. Instructions: Round all answers to the nearest whole number, except for discount factors 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 (5 millions) 2016 2017 2011 2013 Period Increase NOA 455 FCFF INOPAT Increase in NDA 2,060 2017 30 3.139 Discount factor (1/(wit) 0.9434 095 0.96 097 Present value of horizon FCFF 2,792 2,504 20 Cum present value of horon FCFFS 11 505 Present value of terminal 64,096 M Total firm value 75.00 W NNO Firm equity $ 67,111 M Shares outstanding on 11149 Stock ice per share Check 0 i Type here to search Question 1 Partially correct Mark 14.00 out of 25.00 P Flag 9 Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net ope Reported Horizon Period Terminal $ millions 2016 2017 2018 2019 2020 Period Sales $73,785 $75,261 $76,766 $78,301 $79,867 $80,666 NOPAT 3,312 3,387 3,454 3,524 3,594 3,630 NOA 21,445 21,872 22,309 22,755 23,210 23,443 Answer the following requirements assuming a terminal period $8,488 million. Question 1 Partially correct Mark 14.00 out of 25.00 P Flag question Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016 Reported Horizon Period S millions Sales 3,454 Terminal 2016 2017 2018 2019 2020 Period $73,785 575,261 $76,766 $78,301 $79,867 $80,666 3,312 3,387 3,524 3.594 3,630 21.445 21,872 22,309 22,755 23,210 23,443 NOPAT NOA Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million $8,488 million a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016, Instructions: Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5 decimal places Round stock price per share to two decimal places . Do not use negative signs with any of your answers. Type here to search Round all answers to the nearest whole number, except for dicrount factors and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places. . Do not use negative signs with any of your answers. Terminal Period 2020 455 233 2017 427 2,960 0.9434 2,792 Forecast Horizon 2018 2019 437 446 3,017 3,078 0.95 x 0.96 X 2,845 X 2,904 x 3,397 3,139 0.97 X 2,962 x Reported ($ millions) 2016 Increase in NOA FCFF (NOPAT - Increase in NOA) Discount factor [1/(1+rw)t] Present value of horizon FCFF Cum present value of horizon FCFF $ 11,505 X Present value of terminal FCFF 64,096 X Total firm value 75,600 x NNO 8,488 Firm equity value $ 67,111 x Shares outstanding (millions) 602 Stock price per share $ 111.49 X Check You have correctly selected 14. Partially correct Marks for this submission: 14.00/25.00 Businesscourse top-3729319cmid17385&croposat Return to course Reported on Period Terminal 5 millions 2016 2017 18 2019 2020 Period Sales 573.785 SS5.756 57.301 579.857 580,666 NOPA 2312 3524 2630 NOR 21.45 2157222.309 22.755 23.210 23.03 My Subscriptions Sara Answer the following requirements assuming a terminal period growth rate of 1%, a discount of common shares outstanding of 602 milion and retroperiton 58.488 million a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016. Instructions: Round all answers to the nearest whole number, except for discount factors 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 (5 millions) 2016 2017 2011 2013 Period Increase NOA 455 FCFF INOPAT Increase in NDA 2,060 2017 30 3.139 Discount factor (1/(wit) 0.9434 095 0.96 097 Present value of horizon FCFF 2,792 2,504 20 Cum present value of horon FCFFS 11 505 Present value of terminal 64,096 M Total firm value 75.00 W NNO Firm equity $ 67,111 M Shares outstanding on 11149 Stock ice per share Check 0 i Type here to search Question 1 Partially correct Mark 14.00 out of 25.00 P Flag 9 Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net ope Reported Horizon Period Terminal $ millions 2016 2017 2018 2019 2020 Period Sales $73,785 $75,261 $76,766 $78,301 $79,867 $80,666 NOPAT 3,312 3,387 3,454 3,524 3,594 3,630 NOA 21,445 21,872 22,309 22,755 23,210 23,443 Answer the following requirements assuming a terminal period $8,488 million. Question 1 Partially correct Mark 14.00 out of 25.00 P Flag question Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016 Reported Horizon Period S millions Sales 3,454 Terminal 2016 2017 2018 2019 2020 Period $73,785 575,261 $76,766 $78,301 $79,867 $80,666 3,312 3,387 3,524 3.594 3,630 21.445 21,872 22,309 22,755 23,210 23,443 NOPAT NOA Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million $8,488 million a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016, Instructions: Round all answers to the nearest whole number, except for discount factors and stock price per share. Round discount factors to 5 decimal places Round stock price per share to two decimal places . Do not use negative signs with any of your answers. Type here to search Round all answers to the nearest whole number, except for dicrount factors and stock price per share. Round discount factors to 5 decimal places. Round stock price per share to two decimal places. . Do not use negative signs with any of your answers. Terminal Period 2020 455 233 2017 427 2,960 0.9434 2,792 Forecast Horizon 2018 2019 437 446 3,017 3,078 0.95 x 0.96 X 2,845 X 2,904 x 3,397 3,139 0.97 X 2,962 x Reported ($ millions) 2016 Increase in NOA FCFF (NOPAT - Increase in NOA) Discount factor [1/(1+rw)t] Present value of horizon FCFF Cum present value of horizon FCFF $ 11,505 X Present value of terminal FCFF 64,096 X Total firm value 75,600 x NNO 8,488 Firm equity value $ 67,111 x Shares outstanding (millions) 602 Stock price per share $ 111.49 X Check You have correctly selected 14. Partially correct Marks for this submission: 14.00/25.00

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