#11 You own a share of stock in Macho Man Incorporated. The company is expected to pay a dividend of S1.56 per share next year. As an investor, you want a 11.00% annual return on Macho stock. (you can assume that the price of a share is the PV of its dividends.) What is the value of a share of Macho Man stock today if the company pays the same dividend forever? #12 After finishing your first finance class, you decide to start your own investment plan. Your first stock to purchase is Walgreen's (WAL). After careful analysis, you predict the following payoffs for owning Walgreen's stock over the next four years YEAR Dividends $1.00 $1.25 $1.50 $1.50 Selling Price $50.00 If you require a 20.00% retum on your investment (a little high...). what price are you willing to pay today for a share of Walgreen's? 173 Rusty Nails Bar & Grill reported free cash flow of $782,000.00 last year. Free cash flows are projected to grow by 2.50% annually. For the same period, the firm reported marketable securities of $9,000.00 and $750,000.00 in outstanding long-term debt. The firm's reported shareholder equity totaled $300,000.00. The firm currently has 100,000.00 common shares outstanding and the cost of capital is 14.00%. What is the value of operations for Rusty Nails Bar & Grill? # 4 Rusty Nails Bar & Grill reported free cash flow of S782,000.00 last year, Free cash flows are projected to grow by 2.50% annually. For the same period, the firm reported marketable securities of $9,000.00 and $750,000.00 in outstanding long-term debt. The firm's reported shareholder cquity totaled $300,000.00. The firm currently has 100,000.00 common shares outstanding and the cost of capital is 14.00% What is the total corporate (firm) value for Rusty Nails Bar & Grill? Rusty Nails Bar & Grill reported free cash flow of $782,000.00 last year. Free cash flows are projected to grow by 2.50% annually. For the same period, the firm reported marketable securities of $9,000.00 and $750,000.00 in outstanding long-term debt. The firm's reported shareholder equity totaled $300,000.00. The firm currently has 100,000.00 common shares outstanding and the cost of capital is 14.00% What is the intrinsic value of common equity for Rusty Nails Bar & Grill? Answer format: Currency Round to: 2 decimal places