Following are forecasted sales, NOPAT, and NOA for AT&T for 2019…

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Question Answered step-by-step Following are forecasted sales, NOPAT, and NOA for AT&T for 2019… Following are forecasted sales, NOPAT, and NOA for AT&T for 2019 through 2022a. Forecast the terminal period values assuming a 2% terminal period growth rate. Round answers to the nearest dollar.    ReportedForecast Horizon$ millions20182019202020212022Terminal Period                             Sales$170,756$181,001$191,861$203,373$215,576Answer                              NOPAT20,89522,08223,40724,81226,300Answer                              NOA369,039390,931414,387439,251465,607Answer                               b. Estimate the value of a share of AT&T common stock using the residual operating income (ROPI) model as of December 31, 2018; assume a discount rate (WACC) of 5.7%, common shares outstanding of 7,281.6 million, net nonoperating obligations (NNO) of $175,155 million, and noncontrolling interest (NCI) from the balance sheet of $9,795 million. Rounding instructions:Use rounded answers for subsequent computations.Round answers to the nearest whole number unless otherwise noted (do not round shares outstanding).Round discount factor to 5 decimal places and stock price per share to two decimal places.Do not use negative signs with your answers.    Forecast Horizon Terminal$ millions 2019202020212022PeriodROPI (NOPAT – [NOABeg × rw]) Answer Answer Answer Answer Answer Discount factor [1 / (1 + rw)t ] Answer Answer Answer Answer  Present value of horizon ROPI Answer Answer Answer Answer  Present value of horizon ROPIAnswer      Present value of terminal ROPIAnswer      NOAAnswer      Total firm valueAnswer      NNOAnswer      NCIAnswer      Firm equity valueAnswer      Shares outstandingAnswer      Stock value per shareAnswer      Accounting Business Financial Accounting MBA AF616 616 Share QuestionEmailCopy link Comments (0)