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Calculate the intrinsic value of GE in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each scenario independently.

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Calculate the intrinsic value of GE in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each scenario independently. a. The terminal growth rate will be 9.80%. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Intrinsic $ value 85.39 b. GE's actual beta is 1.09. (Round your answer to 2 decimal places.) Answer is complete and correct. Intrinsic value $ 36.31 C. The market risk premium is 9.90%. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Intrinsic 35.70 X value $ Div growth Term value Inputs for GE beta mkt prem rf k_cquity term gwth 1.1 0.08 0.025 0.1130 0.060 Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Dividend 1.04 1.23 1.41 1.60 1.85 2.11 2.40 2.70 3.02 3.34 3.67 3.99 4.31 4.61 4.89 5.18 0.1544 0.1450 0.1355 0.1261 0.1166 0.1072 0.0978 0.0883 0.0789 0.0694 0.0600 0.0600 Investor CF 1.04 1.23 1.41 1.60 1.85 2.11 2.40 2.70 3.02 3.34 3.67 3.99 4.31 4.61 4.89 108.75 Value line forecasts of annual dividends 103.57 Transitional period with slowing dividend growth Beginning bf constant growth perlod 35.70 = PV of CF E17*(1+F17/(B5 - 517) NPV(B5.H2:H17)

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