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6 FILE HOME INSERT Calculating stock price - Excel FORMULAS DATA REVIEW ? - PAGE LAYOUT 6 x Sign In VIEW . Calibri - 11

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6 FILE HOME INSERT Calculating stock price - Excel FORMULAS DATA REVIEW ? - PAGE LAYOUT 6 x Sign In VIEW . Calibri - 11 AA Paste BIU- % Alignment Number Conditional Format as Cell Formatting Table Styles Styles Cells Editing Clipboard Font A1 Book D int E 1 G H ences 2 The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the stock, what is the current price? What will the price be in three years? In 15 years? 4 5 6 $ 7 8 Current dividend Dividend growth rate Required return Price in Year Price in Year Price in Year 9 1.95 4% 10.5% 0 3 15 10 11 (Chapter 7) Saved Help . A D E F H 1 N 3 The Jackson-Timberlake Wardrobe Co just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on the stock, what is the current price? What will the price be in three years? In 15 years? 4 5 6 $ 7 1.95 4% 10.5% 8 Current dividend Dividend growth rate Required return Price in Year Price in Year Price in Year 9 3 15 10 11 12 13 Complete the following analysis. Do not hard code values in your calculations. 15 16 Dividend in one year Price today 17 18 19 Dividend in 4 years Price in 3 years Sheet1 A B D E F G I . 4 5 6 $ 7 8. Current dividend Dividend growth rate Required return Price in Year Price in Year Price in Year 1.95 4% 10.5% 0 3 15 9 10 11 12 13 14 Complete the following analysis. Do not hard code values in your calculations. 15 16 Dividend in one year Price today 17 18 19 20 21 Dividend in 4 years Price in 3 years 22 Dividend in 16 years Price in 15 years 23 25 26 Sheet1

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