Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2016 (ending January 28, 2017).
Forecast assumptions and other financial information for Target are as follows:
Required:
a. Use the residual operating income (ROPI) model to estimate the value of Target's equity, per share at fiscal year-end.
b. Target Corp. shares closed at $53.82 per share on March 8, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Question

Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2016 (ending January 28, 2017). 
  Forecast assumptions and other financial information for Target are as follows:
  Required: 
a. Use the residual operating income (ROPI) model to estimate the value of Target's equity, per share at fiscal year-end.
b. Target Corp. shares closed at $53.82 per share on March 8, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Quizplus · Accepted Answer

The Answer of Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2016 (ending January 28, 2017). 
  Forecast assumptions and other financial information for Target are as follows:
  Required: 
a. Use the residual operating income (ROPI) model to estimate the value of Target's equity, per share at fiscal year-end.
b. Target Corp. shares closed at $53.82 per share on March 8, 2017, the date the 10-K was filed with the SEC. How does your valuation compare with this closing price?

Following Are Financial Statement Numbers and Select Ratios for Target