Business, 31.07.2020 06:01 YSGabino2991

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: 3

Show answers

Another question on Business

Business, 22.06.2019 02:20

Larissa has also provided the following information. during the year, the company raised $36 million in new long-term debt and retired $20.52 million in long-term debt. the company also sold $22 million in new stock and repurchased $32.4 million. the company purchased $54 million in fixed assets, and sold $6,107,400 in fixed assets. larissa has asked dan to prepare the financial statement of cash flows and the accounting statement of cash flows. she has also asked you to answer the following questions: 1. how would you describe east coast yachts' cash flows? 2. which cash flows statement more accurately describes the cash flows at the company? 3. in light of your previous answers, comment on larissa's expansion plans.

Answers: 2

Answer

Business, 22.06.2019 18:30

Jason started last week with $900 in his checking account. during the week, he wrote the checks below. at the end of the week, jason received a paycheck for $534.59. he recorded all of these transactions in his check register. trans typ./ check no. date description of transaction payment/ debit deposit/ credit (+) balance 900 00 241 12/4 miller's food market 53.21 53 21 groceries 846 79 242 12/7 frank's auto parts 24.05 24 05 oil and filter 822 74 243 12/8 mike's barber shop 15.00 15 00 haircut 807 74 deposit 12/9 paycheck 534.59 534 59 1,342 33 evaluate jason's check register. a. jason did a good job; everything is correct. b. the final balance is wrong; jason did not add everything correctly. c. jason should have written debit instead of deposit for the transaction type. d. jason entered the amount for his paycheck in the wrong column.

Answers: 3

Answer

Business, 23.06.2019 02:00

When watching the video example 87: function notation, the presenter states that we need to, "go to this function and in the place of x, we will put in " â4 â3 â2 â1?

Answers: 3

Answer

Business, 23.06.2019 03:10

Norbert and suzie are both lineworkers for a utility company who have been working together for almost two years. norbert frequently tells suzie that the job is called "lineman" and not "linewoman," and thus, it is not a woman's job. he plays practical jokes on her such as hiding some of her tools and sabotaging her truck. he asks her when she plans on getting pregnant and staying at home to take care of her children and gives her copies of " wanted" ads for secretarial and waitress jobs. such behavior has kept suzie disturbed at work. if suzie complains about norbert's conduct:

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