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Thank you in advance! 12-18. Analysts forecast that Dixie Chicks, Inc. (DCD will pay a dividend of $2.20 a share Common Stock at the end

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12-18. Analysts forecast that Dixie Chicks, Inc. (DCD will pay a dividend of $2.20 a share Common Stock at the end of this year, contiuing a long-term growth trend of 9 percent a year. If this trend is expected to contimue indefinitely and investors' required rate of returm for DCI is 18 percent, what is the market value per share of DCTs common stock? 12-19. PepsiCo NYSE PEP) paid a dividend of S058 per share this year Dividends at the end- Common Stock of each of the next five years are expected to be as follows: Nonconstant Growth Year 1 Year 2 Year 3 Year 4 Year 5 $0.70 S0.83 $0.96 $1.09 $1.22 After year 5, dividends are expected to grow indefinitely at 10 percent a year If your required rate of returm for PepsiCo common stock is 12 percent, what is the most that you would pay per share for PepsiCo today? 12-20. Regis knows that CRS stock sells for $82 per share, has a growth rate of 7 percent, and a Common Stock Yield dividend that was just paid of S3.82. What can Regis expect as an anmual percent yield if he purchases a share of CRS stock? 12-21. Gwenyth just purchased a bond for $1,2S0 that has a matunity of 10 years and a coupon Yield to Maturity interest rate of 8.5 percent paid anually. What is the YTM of the $1,000 face value bond that she purchased? (YTM 12-22. Analysts forecast that fee cash flows from Dixie Chicks, Inc. (DCI) will be $2.1 million Enterprise Value, Constant Growth in the coming year, continuing a long-term growth trend of 9 percent a year. If this trencd is expected to continue indefinitely and investors required rate of return for DCI is 18 what will be the total enterprise value of DCI? 12-23. The free cash flow for PepsiCo NYSE: PEP) this year was $1,026,600,000. Free cashEnterprise Value, flows at the end of each of the next five years are expected to be as follows: Growth Year 1 Year 2 Year 3 Year 4 Year 5 $1,231,920,000 $1,453,665,600 $1,686,252,096 $1,922,327,389 $2,153,006,676 After year 5, free cash flows are expected to grow indefinitely at 10 percent a year If the weighted average cost of capital (WACC) for PepsiCo is 12 percent, what is the enterprise value of the company today? 12-24. Jack and Frank Baker know their piano renditions of lounge songs have limited appeal Book Value on the nightclub circuit, so they work part-time as investment consultants. They are researching relatively unknown corporations, one of which is Susie Diamond Enterprises. To get a quick idea of the value of SDE's common stock, they have taken the following numbers from the most recent financial statements. Total Assets Total Liabilities 250,000 Shares of Common Stock Issued 100,000 Shares of Common Stock Outstanding $675,000 $120,000 What is the book value (net worth) of Susie Diamond Enterprises

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