1. Use the information below, along with the cash flow data, to compute the value per share of Nike. (Please show your work in a separate sheet.)

1. Nike has 368,000,000 shares of common stock outstanding.

2. Nike's cost of equity capital is 10%. Required: a. Determine the value per share of Nike assuming that Nike will have no future growth and that 90% of all dividends go to common stockholders. (Use DDM for common stock.) b. Determine the value per share of Nike assuming that Nike has a constant growth rate and that the growth rate can be determined by computing the growth of cash provided by operations in the current period presented. (Dividend considered in the DDM is increased from the current dividend by the growth rate.)

Consolidated Statements of Cash Flows
		Year Ended May 31,
(In millions)		2012				2011				2010
Cash provided by operations:
Net income		$	2,223			$	2,133			$	1,907
Income charges (credits) not affecting cash:
Depreciation			373				335				324
Deferred income taxes			(60	)			(76	)			8
Stock-based compensation (Note 11)			130				105				159
Amortization and other			32				23				72
Changes in certain working capital components and other assets and liabilities:
(Increase) decrease in accounts receivable			(323	)			(273	)			182
(Increase) decrease in inventories			(805	)			(551	)			285
(Increase) decrease in prepaid expenses and other current assets			(141	)			(35	)			(70	)
Increase (decrease) in accounts payable, accrued liabilities and income taxes payable			470				151				297
Cash provided by operations			1,899				1,812				3,164
Cash provided (used) by investing activities:
Purchases of short-term investments			(2,705	)			(7,616	)			(3,724	)
Maturities of short-term investments			2,585				4,313				2,334
Sales of short-term investments			1,244				2,766				453
Additions to property, plant and equipment			(597	)			(432	)			(335	)
Disposals of property, plant and equipment			2				1				10
Increase in other assets, net of other liabilities			(37	)			(30	)			(11	)
Settlement of net investment hedges			22				(23	)			5
Cash provided (used) by investing activities			514				(1,021	)			(1,268	)
Cash used by financing activities:
Reductions in long-term debt, including current portion			(203	)			(8	)			(32	)
(Decrease) increase in notes payable			(65	)			41				(205	)
Proceeds from exercise of stock options and other stock issuances			468				345				364
Excess tax benefits from share-based payment arrangements			115				64				58
Repurchase of common stock			(1,814	)			(1,859	)			(741	)
Dividends