For this question pertaining to estimating share value using the DCF model, plea

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For this question pertaining to estimating share value using the DCF model, please let me know where I went wrong with my answers. Please solve the problem in its entirity and show your steps to your calculations.

QUESTION 2 Partially correct 0.85 points out of 1.00 Flag question Forecasting and Estimating Share Value Using the DCF Model Following are the income statement and balance sheet for Intel Corporation. INTEL CORPORATION Consolidated Statements of Income Year Ended (In millions) Dec. 25, 2010 $ 44,223 15,132 29,091 6,576 6,309 Dec. 26, 2009 35,127 15,566 19,561 5,653 7,931 231 35 13,850 5,711 (147) (23) 163 5,704 1,335 4,369 Dec. 27, 2008 $ 37,586 16,742 20,844 5,722 5,452 710 Net revenue Cost of sales Gross margin Research and development Marketing. general and administrative Restructuring and asset impairment charges Amortization of acquisition-related intangibles Operating expenses Operating income Gains (losses) on equity method investments, net* Gains (losses) on other equity investments, net Interest and other, net Income before taxes Provisions for taxes Net income *This should be considered as operating income 12,903 11,890 8,954 (1,380) (376) 488 7,686 2,394 S 5,292 16,188 231 109 16,645 4,581 12,064 INTEL CORPORATION Consolidated Balance Sheets As of Year-Ended (In millions, except par value) Dec. 25, 2010 Dec. 26, 2009 Assets Current assets 3,987 5,285 4,648 2,273 2,935 1,216 813 21,157 17,225 773 Cash and cash equivalents Short-term investments Trading assets Accounts receivables, net $5,498 11,294 5,093 2,667 3,757 1,888 Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Marketable equity securities 31,811 17,899 1,008

Explanation / Answer

Here your mistake is only on net operating profit after tax

1.Basically net operating profit after tax calculated based on operating income in 2010 I.e net operating profit % was 26% on gross sales 44223*26%=11497.98 I.e whole rounded off 11498 is net operating profit after tax ,further it will be increased with 10% ,

At terminal period mistake is just calculation mistake you have taken so rectify as 16834 NOPAT in 2014 added with 10% growth i.e 18517.4 rounded off as 18517 .

Based on this you have to rectify terminal period values and present value of terminal period values automatically you will got your answer,

I can explain briefly if you have given clarity data without missing information.

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