Risk Free Rate 3%

Market Return 8%

ERP = Market return Rf = 5%

Perpetuity Growth Rates

Dividend Growth Rate 3%

FCFF Growth Rate 3%

FCFE Growth Rate 3%

Tax rate 20%.

1.

What is the value of Nike's equity using the FCFE model?

Group of answer choices

$167,194 million

$233,093 million

$422,203 million

$326,456 million

2.

What is the value of NIKEs shares using the FCFE model if he company has 1,578 million shares outstanding?

Group of answer choices

$164.38

$106.43

$210.32

$22.64

3.

What is the value of NIKEs shares using the Dividend Discount Model if the long term growth rate in dividends is expected to be 3%?

Group of answer choices

$28.50

$110.32

$12.64

$64.38