apter 13 roblem 21 Recalculate the intrinsic value of Honda using the three-stage growth model of Spreadsheet 13.1 Treat each scenario independently a. ROE in the constant growth period will be 10% b. Honda's actual beta is 1.15. c. The market risk premium is 8.5% apter 13 roblem 21 Student Name: Course Name: Student ID: Course Number: Use the Excel Applications model below to answer each question Inputs Year beta 1.05 2009 mkt prem 0.08 2010 f 0.035 2011 K_equity 0.119 2012 plowback 0.7 2013 roo 0.11 2014 term gwth 0.077 2015 2016 2017 2018 Value line 2019 forecasts of 2020 annual dividends 2021 2022 2023 Transitional period 2024 with slowing dividend growth Beginning of constant growth period a. ROE in the constant growth period will be 10% Answer b. Honda's actual beta is 1.15. Answer c. The market risk premium is 8.5%. Answer Dividend Div growth Term value 0.90 0.98 1.07 1.15 1.25 0.0851 1.35 0.0843 1.47 0.0835 1.59 0.0827 1.72 0.0819 1.86 0.0811 2.01 0.0803 2.1 0.0794 2 34 0.0786 2.52 0.0778 2.71 0.0770 2.92 0.0770 74.86 Investor CF 0.90 0.98 1.07 1.15 1.25 1.35 1.47 1.59 1.72 1.86 2.01 2.16 2.34 2.52 2.71 77.78 2261 = PV of CF