Estimating Share Value Using the DCF Model Following are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022. 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   Terminal period growth rate 1%       Reported Forecast Horizon Period       Terminal   $ millions 2018 2019 2020 2021 2022 Period   Sales $4,663 $4,803 $4,947 $5,096 $5,249 Answer     NOPAT 821 845 871 897 924 Answer     NOA 1,751 1,804 1,858 1,913 1,971 Answer     b. Estimate the value of a share of Colgate-Palmolive common stock using the discounted cash flow (DCF) model using the following assumptions and the information above. Assumptions     Discount rate (WACC) 5.70%   Common shares outstanding 259.0 million Net nonoperating obligations (NNO) $1,692 million Noncontrolling interest (NCI) $90 million       Reported     Forecast Horizon   Terminal   ($ millions) 2018 2019 2020 2021 2022 Period   Increase in NOA   Answer   Answer   Answer   Answer   Answer     FCFF (NOPAT - Increase in NOA)   Answer   Answer   Answer   Answer   Answer     Present value of horizon FCFF   Answer   Answer   Answer   Answer       Cum. present value of horizon FCFF Answer               Present value of terminal FCFF Answer               Total firm value Answer               Less (plus) NNO Answer               Less NCI Answer               Firm equity value Answer               Shares outstanding (millions) Answer               Stock price per share Answer               c. Colgate-Palmolive’s stock closed at $66.70 on February 21, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? Answer   d. The forecasts you completed assumed a terminal growth rate of 1%. What if the terminal rate had been 2%. What would your estimated stock price have been?   Value   Answer     e. What would WACC have to be to warrant the actual stock price on February 21, 2019?   WACC   Answer

Calculate Average Annual Growth rate (AAGR) of Oman Cement which has the following returns. 2020-21 Beginning value OMR 1550 End of Year 1 OMR 1850 End of Year 2 OMR 1990 End of Year 3 OMR 2290 End of Year 4 OMR 2560

Calculate the Return on Shareholder equity % ratio for Urban Outfitters for both 2018 and 2019. Be sure to report in percentages & round your answer to 2 decimal place.

What is the approx price per share of Company A today (end of 2015/ beginning of 2016)? Data: end of 2016: FCF $100,000 end of 2017: FCF $150,000 end of 2018: FCF $200,000 The growth rate beyond 2018 to infinity is estimated to be 3% per annum WACC= 8% per annum Number of Issued Shares: 500,000 Number of Treasury Shares: 150,000     Show your solution

es Given the information below for Seger Corporation, compute the expected share price at the end of 2022 using price ratio analysis. Assume that the historical (arithmetic) average growth rates will remain the same for 2022. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Year Price 2016 $ 97.60 2017 $ 103.50 2018 $ 102.20 2019 $ 99.70 2020 $ 121.20 2021 $ 136.60 EPS CFPS 2.80 8.22 3.51 4.31 5.01 7.95 8.95 9.00 9.28 11.07 12.37 13.48 SPS 52.60 57.60 57.00 60.50 71.70 79.70 Using PE ratio Using P/CF ratio Using P/S ratio Share Price

Selected data for VHRV Inc. as of 31 December of each year is as follows:                                                                                                   2019                     2020Preferred stock, 8% par P100, non-cumulative                       250,000                250,000Common stock                                                                        600,000                800,000Retained earnings                                                                   150,000                370,000Dividends paid on preferred stock for the year                         20,000                  20,000Net income for the year                                                           120,000                240,000What is VHRV Inc. return on common equity in 2020?

Xyz tradingCondensed comparative balance sheet                                                  2021               2020                2019Assets:Current assets                     468,000.          345,600.          300,000Property and equipment  600,000.           560,400.          500,400Other assets(advances ).   72,000.            126,000.          150,000Total assets.                       1,140,000.         1,032,000.        950,400Liabilities and stockholders’ equityLiabilitiesCurrent liabilities              134,400.            112,800.         100,00012 % long-term notes payable. 240,000.     300,000         350,000Total liabilities.                   374,400.               412,800.       450,000Stockholders’ equity10% preferred stock         120,000.                120,000.        120,000Common stock                  300,000                  240,000        200,000Additional paid in capital   84,000.               48,000           40,000Retained earnings…

For XYZ Corporation, the book value per share at the end of 2021 Is 31.46, ROI is .1, and earnings per share for 2022 (at the end of the year) are 4.57. What is the value of residual earnings per share for 2022? O2.38 1.42 O 3.57 O 1.13

Estimating Share Value Using the DCF Model Following are forecasts of Home Depot's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of February 3, 2019, which the company labels fiscal 2018. Module Forecast Horizon Period Reported Terminal $ millions 2018 2019 2020 2021 2022 Period Sales $108,203 $115,777 $123,882 $132,553 $141,832 $144,669 12,073 12,967 13,875 14,846 15,885 16,203 25,546 27,332 29,245 31,292 33,483 34,152 NOPAT NOA Answer the following requirements assuming a discount rate (WACC) of 7.85%, a terminal period growth rate of 2%, common shares outstanding of 1,105 million, net nonoperating obligations (NNO) of $27,424 million. Required a. Estimate the value of a share of Home Depot's common stock using the discounted cash flow (DCF) model as of February 3, 2019. Note: Do not round until your final answer; round your final answer to two decimal places. Stock price per share: $ 519 b. Home Depot stock closed at $190.06 on March 28, 2019, the…

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below:  (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)