A stock is selling for $20 and the last dividend annual payment was $0.75. What is the correct formula for cell B4 to calculate the required rate of return if dividends are expected to grow at 4% per year? B 1 Intrinsic Value 20.00 2 Last Dividend 0.75 3 Growth Rate 4% 4 Required Return ? =B2*(1+B3)/(B1+B3) =B1/(B2-B3)*(1+B3) =B1*(B2-B3)/(1+B3) =B2*(1-B3)/B1-B3 =B2*(1+B3)/B1+B3 C 2016 175 What would be the value of cell B2? A B 1 2017 2 Interest Expense =IF(B6=0,C2,83*B5+B4*B6) 3 Long-Term Debt 2,000 4 Notes Payable 500 5 Rate on LTD 10% 6 Rate on S.T. Notes 5% 7 Iteration 1 200 175 225 190 250 What should be the correct formula for cell B5? A B 1 Debt to Equity Ratio 0.50 2 Cost of Equity 15% 3 After-tax Cost of Debt 6% 4 Tax Rate 35% 5 WACC ? =B2/(1-B1)+B3/(1-B1) =B2/(1-B1)+B3*B4*B1/(1-B1) =B2/(1-B4)+B3*B1/(1-B4) =B2/(1+B1)+B3*(1-B4)*B1/(1+B1) =B2/(1+B1)+B3*B1/(1+B1) What is the value of cell B5? A B 1 26 N 58 3 52 4 47 5 =SMALL(A1:A4,4) *SMALL(A1:A4,1)/SMALL(A1:A4,3) 29 32 49 53 47 Use the following table to answer the question. A B 1 10 5.5 2 20 12 3 30 7.5 4 40 4 5 50 10 Assume the following formula exists: Emin(A1:45), what will display once the formula is evaluated? 150 20 50 10 Use the following table to answer the question. A B 1 10 5.5 2 20 12 3 30 7.5 4 40 4 5 50 10 Assume the following formula exists: =sum(A2,A5), what will display once the formula is evaluated? 70 150 35 140