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34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. O O Calculated Price = Po = Sum of PVs = Ca. 11.26%
34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. O O Calculated Price = Po = Sum of PVs = Ca. 11.26% b. 11.57% c. 12.25% d. 9.54% $0.00 e. 11.84% A positive number will be here when dividends are estimated. Sally told you that the growth rates in the template were just put in as a trial, and that you must replace them with the analysts' forecasted rates to get the correct forecasted dividends and then the estimated HV. She also notes that the estimated value for rs, at the top of the template, is also just a guess, and you must replace it with a value that will cause the Calculated Price shown at the bottom to equal the Actual Market Price. She suggests that, after you have put in the correct dividends, you can manually calculate the price, using a series of guesses as to the Estimated rs. The value of rs that causes the calculated price to equal the actual price is the correct one. She notes, though, that this trial-and-error process is quite tedious, and that the correct rs could be found much faster with a
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