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answer using excel please You are an analyst in charge of valuing common stocks. You have been asked to value two stocks. The first stock

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You are an analyst in charge of valuing common stocks. You have been asked to value two stocks. The first stock AB Inc. just paid a dividend of $6.00. The dividend is expected to increase by 60%, 40%, 30% and 10% per year respectively in the next four years. Thereafter the dividend will increase by 4% per year in perpetuity. The second stock is CD Inc. CD will pay its first dividend of $10 in 5 years. The dividend will increase by 40% per year for the following 3 years after its first dividend payment. Thereafter the dividend will increase by 3% per year in perpetuity. a) Calculate AB's expected dividend for t= 1, 2, 3, 4, and 5. b) Calculate CD's expected dividend for t - 1, 2, 3, 4, 5, 6, 7, 8 and 9. Assume that the required rate of return for both stocks is 15%. Both stocks have a required rate of return of 45% per year for the next 2 years, 30% per year for the following 2 years, and thereafter the required rate of return will be 10%. c) What is the current price of AB? d) What is the current price of CD? Both stocks have a required rate of return of 45% per year for the next 2 years, 30% per year for the following 2 years, and thereafter the required rate of return will be 10%. e) What is the current price of AB? 1) What is the current price of CD? Note you cannot use the NPV function to immediately value the stocks at time 0, as the required rate of return changes during the forecast period. Note: All of Calculations should be rounded to the nearest penny. That is 2 decimal places

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