Business, 29.07.2020 21:01 caelilou

P13-28. Estimating Share Value Using the DCF Method. Following are forecasted sales, NOPAT, and NOA for AT&T for 2019 through 2022. Forecast Horizon Period Reported $ millions 2018 2019 2020 2021 2022 Sales…………………………………$ 170,756 181,001 191,861 203,373 215,576 NOPAT……………………………… 20,895 22,082 23,407 24,812 26,300 NOA………………………………….. 369,039 390,931 414,387 439,251 465,607 Required. a. Forecast the terminal period values assuming a 2% terminal period growth rate. b. Estimate the value of a share of AT&T common stock using the discounted cash flow (DCF) 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. c. AT&T closed at $30.85 on February 20, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? d. If WACC has been 6.2%, what would the valuation estimate have been? What about if WACC has been 2.5%?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 06:40

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

Answers: 2

Answer

Business, 22.06.2019 10:30

Which maxim is being neglected in the following conversation? eli: how did you do at the track meet? caleb: i came in second place! eli: congratulations! what was your time? caleb: six minutes, four seconds. the guy who won only beat me by three seconds. eli: really? katie said the winning time was under 6 minutes. caleb: oh, well, he might have beat me by five seconds. a)maxim of quantity b)maxim of quality c)maxim of relevance d)maxim of manner

Answers: 1

Answer

Business, 22.06.2019 20:00

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be:

Answers: 1

Answer

Business, 22.06.2019 20:50

Barbara flynn is in charge of maintaining hospital supplies at general hospital. during the past year, the mean lead time demand for bandage bx-5 was 65 (and was normally distributed). furthermore, the standard deviation for bx-5 was 6. ms. flynn would like to maintain a 90% service level.refer to the standard normal table for z-values.a) what safety stock level do you recommend for bx-5? safety stock=)what is the appropriate reorder point? reorder point=

Answers: 1

Answer

You know the right answer?

P13-28. Estimating Share Value Using the DCF Method. Following are forecasted sales, NOPAT, and NOA...

Questions