Estimating Share Value Using the ROPI Model
Refer to the information in M 12-13 to answer the following requirements.
a. Estimate the value of a share of Target common stock using the residual operating income (ROPI) model as of February 2, 20 1 3.
b. Target Corporation (TGT ) stock closed at $68 .52 on March 20 , 20 13, the date the 10-K was filed with the SEC. How does your valuation estimate compare with this closing price? What do you believe are some reasons for the difference?
M 12-13
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 February 2, 20 13.
Answer the following requirements assuming a terminal period growth rate of 1%, a discounter are (WACC) of 7%, common shares outstanding of 645 million, and net nonoperating obligations (NNO) of $ 11,023 million.
a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of February 2, 2013.
b. Target Corporation (TGT) stock closed at $68.52 on March 20, 20 13, the dare the I 0-K was filed with the SEC. How does you r valuation estimate compare with this closing price? What do you believe are some reasons for the difference?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more