answers to questions b, d & e please Estimating Share Value Using the ROPI ModelFollowing are forecasted sales, NOPAT, and NOA for Colgate-Palmolive Company for 2019 through 2022.Forecast Horizon PeriodColgate Palmolive (CL) Reported$ millions20182019202020212022Sales$15,544$16,010 $16,491 $16,985 $17,495NOPAT2,7372,8182,9022,9893,079NOA5,8376,0126,1936,3786,570a. Forecast the terminal period values for Sales, NOPAT, and NOA, assuming a 1% terminal period growth rate.Note: Round answers to the nearest dollar.Terminal period sales2$17,670Terminal period NOPAT $3,110 vTerminal period NOA246,636 vb. Estimate the value of a share of Colgate-Palmolive common stock using the residual operating income (ROPI) model. Assume a discount rate (WACC) of 5.70%, common shares outstanding of 862.9 million, net nonoperatingobligations (NNO) of $5,640 million, and noncontrolling interest (NCI) frombthe balance sheet of $299 million.Note: Round answers to two decimal places.$ 57.96c. Colgate-Palmolive stock closed at $66.70 on February 21, 2019, the date the Form 10-K was filed with the SEC. How does your valuation estimate compare with this closing price?Stock price is overvaluedd. The forecasts assumed a terminal growth rate of 1%. If the terminal growth rate had been 2%, what would the estimated stock price have been?Note: Round answers to two decimal places.$ 71.8e. What would WACC need to be to warrant the actual stock price on February 21, 2019?Note: Round answer to two decimal places (for example, 0.0674533 = 6.75%).75.93

Weighted Average overall cost of capital of the firm under which the cost related to all sources of…

Answered: nswers to questions b, d & e pl

Business

Finance

nswers to questions b, d & e pl

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter3: Analysis Of Financial Statements

Section: Chapter Questions

Problem 14P: The Jimenez Corporation’s forecasted 2020 financial statements follow, along with some industry...

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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 $15,544 $16,010 $16,491 $16,985 $17,495 Answer NOPAT 2,737 2,818 2,902 2,989 3,079 Answer NOA 5,837 6,012 6,193 6,378 6,570 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 863.0 million Net…
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