1. The table below shows the total dividends, share repurchases, and stock issues for a firm in each year from 2003-2013 (copy and paste this table into Excel) Please use excel and show all work and the formulas used- thank you!!

Year ending	Dividends	Repurchases	Stock issues
31-Dec-03	$620,250,000	$241,500,000	$840,000
31-Dec-04	730,500,000	309,000,000	1,117,500
31-Dec-05	852,750,000	564,000,000	1,687,500
31-Dec-06	978,750,000	3,697,500,000	2,017,500
31-Dec-07	1,109,250,000	575,000,000	1,657,500
31-Dec-08	1,293,000,000	729,750,000	2,902,500
31-Dec-09	1,535,250,000	1,127,500,000	3,855,000
31-Dec-10	1,785,750,000	1,303,500,000	2,925,000
31-Dec-11	2,059,500,000	887,250,000	2,332,500
31-Dec-12	2,438,250,000	500,000,000	12,000,500
31-Dec-13	2,844,750,000	1,287,750,000	5,220,000

The current stock price for this firm is $42.15 and they have 2,919,842,000 shares outstanding. Do the following to calculate the cost of equity for this firm:

A. Calculate the total cash flow to equity for each year, and then find the year-to-year percentage change in the total cash flow to equity.

B. Using a line graph, graph dividends, repurchases, stock issues, and total cash flow to equity where year is on the x-axis and the cash flow amount is on the y-axis. This graph will give you an idea of how each cash flow to equity component has behaved over the past ten years.

C. Calculate the compound growth rate in total cash flow to equity over the past 10 years and 5 years separately.

D. Calculate the average year-to-year % change in total cash flow to equity over the past 10 years and 5 years separately.

E. Calculate the cost of equity using the Gordon model and each of the four growth rates you calculated in parts (c) and (d). You should have four cost of equities.

F. In a textbox, give a brief description of what is going on in the data for total cash flow to equity, and identify what you think is the true cost of equity for the firm and why.