(e) Forecast Cisco's sales, NOPAT, and NOA for years 2017 through 2020 and the terminal
period using the following assumptions: (12 points)
Sales growth 2017
10%
Sales growth 2018
8%
Sales growth 2019
5%
Sales growth 2020
4%
Terminal growth
1%
Net operating profit margin
2016 rate rounded to three decimal places
Net operating asset turnover
2016 rate rounded to three decimal places
Assume a discount rate (WACC) of 9%, common shares outstanding of 5,029 million, and net
nonoperating obligations (NNO) of $(37,113) million (NNO is negative which means that Cisco
has net nonoperating investments).