Please look at all 3 photos

Homework Problems (Spring 2019) - These problems are designed to give you more practice in calculating the values for these stocks. Follow the steps we did in class to help you figure out the proper growth rates for your valuations. I will let you know when they are due in class. you have questions, please feel free to stop by my office or visit with one of the 318 tutors for assistance 1. Coca Cola (KO): I have provided you with dividend information and free cash flow information on Coca Cola. Calculate the value of the stock using the assumptions provided CAPM Model: The stock betais AS. Use beta to calculate the rate of return. Assume the risk free rate is 1.75% and the market risk premium is 7%. Calculate the stockholder expected rate of return. Dividend Model: Calculate the growth in dividends and the average growth individends. Use this as your future gestimate. Use 8% as your stockholder rate of return estimate. Use 2018 dividend as Do. Calculate the value of one share of stock FCF Model: Calculate the time value of money growth rate from 2014-2018 (solving for using PV and FV). Use this as your estimate for R. Assume a WACC or discount rate of 7% for the FCF model. Use the average of all FCFs from 2014-2018 as your FCF. Their debt level is $42,476M and number of shares is 4,284M. Calculate the value of one share of stock. Calculaters (01/PO) : The current stock price is $54.68. Use this stock price to calculate your expected rate of return using the dividend model assumptions. KO 2014 2015 2016 2017 2018 Div FCF 1.22 6,115.9 1.325,254.0 1.406,961.9 1.48 1,600.8 1.56 7,447.5 | 2. Eli Lilly (LLY): The following company. e following table contains historical dividends and free cash flows for the CAPM Model: The stock beta is 16 Tree rate is 1.75% and the market risk premium is 7% he stock beta is .16. Use beta to calculate the rate of return. Assume the risk ividend Model: Calculate the m ain didends and the average growth in dividends. this as you as your estimate of future dividend growth. Use 2018 dividend as De Use stockholder rate of return (r) estimate. Calculate the value of the stock FCF Model: For FCF, calculate the time value of the rate for 2014-2018, (solving for using PV and FV). This estimate is not providing an annorlate estimation of future growth, so use 3% as your assumption. Use a WACC of 5 as your discount rate. Use the average of an FCFS from 2014-2018 as your FCF The debt for this comparw is $16.432 SM and the number of shares is 915.4M. Find the value of one share of stock. Calculate rs = (D1/PO)+g: The current stock price is $107.09. Use this stock price to calculate your expected rate of return using the dividend model assumptions. LLY 2014 2015 2016 2017 2018 Div FCF 1.96 1,634.3 2.00 2,974.6 2.04 2,966.6 2.082,406.7 2.25 1,591.3