Suppose that Nike has a dividend payout ratio of 35%. Next year, it will earn $.50 per share and have a return on equity of 10%. The shareholders required return is 8%.

1. Calculate the companys growth rate of Earnings Per Share.
2. Using the earnings model, what is the value of the stock?
3. Construct a data table that shows how the growth rate and value of the stock will change if the ROE ranges between 7% and 20%, in 1% increments. Using that date, create a scatter chart to show the relationship between the value of the stock and the ROE. Is the relationship linear?
4. Using the constant-growth model, what is the value of the stock? Please show excel functions and how you did this. Thank you