View the step-by-step solution to:

Following are nancial statement numbers and select ratios for Target Corp. for the scal year 2016 (ending January 28, 2017). Current Forecast...

Screen Shot 2018-05-17 at 7.43.07 PM.png

I am not sure Im doing this exercise properly

If I could get some help on how to solve it

Screen Shot 2018-05-17 at 7.43.07 PM.png

24. Following are financial statement numbers and select ratios for Target Corp. for the fiscal year
2016 (ending January 28, 2017). Current Forecast Horizon _
Terminal
($ millions) 2016 2017 2018 2019 2020 Year
Total revenues $69,495 $71 1580 $73,727 $75,939 $78,217 $78,999
Net operating profit after tax
(NOPAT) 3,302 3,436 3.539 3,645 3,754 3,792
Net operating assets (NOA) 21,128 21 ,757 22,409 23,082 23,774 24,012 Forecast assumptions and other financial information for Target are as follows: Revenue growth 3%
Net operating profit margin (NOPM) 4.8%
Net operating asset turnover (NOAT) 3.29
Terminal growth rate 1%
Discount rate 7%
Shares outstanding in millions 556.2
Stockholders‘ equity $10,953
Net nonoperating obligations (NNO) $10,175 Use the residual operating income (ROPI) model to estimate the value of Target's equity, per
share at fiscal year-end.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question