Exercise Bicycle Company is expected to pay a dividend of $$3\mathrm{.}60$ in year $1,$ a dividend of $$4\mathrm{.}30$

in year $2,$ and a dividend of $$4\mathrm{.}80$ in year $3.$ After year $3,$ dividends are expected to grow at the

rate of $9\%$ per year. An appropriate required return for the stock is $15\%.$ The stock should be

worth $\_\_\_\_\_\_\_$ today.

Exercise #$4($slide $35)$

Shiny Inc. had a FCFE of $$600$ Million in the most recent year and has $250$ Million shares

outstanding. Shiny$$s required return on equity is $12\%,$ and WACC is $10\%.$ If Shiny$$s

FCFE is expected to grow at a constant rate of $7\%,$ its intrinsic value per share is $\_\_\_$

Exercise #$5($slide $38)$

What are the criteria to use in selecting a peer group for relative valuation?