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%?