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 9.70%. (Round your answer to 2 decimal places.)

b. GEs actual beta is 1.08. (Round your answer to 2 decimal places.)

c. The market risk premium is 9.80%. (Round your answer to 2 decimal places.)

Year 2017 2018 Investor CF 1.04 1.23 Inputs for GE beta mkt_prem rf k_equity term_gwth 1.1 0.08 0.025 0.1130 2019 1.41 2020 1.60 1.85 0.060 2021 2.11 2022 2023 2.40 2024 Dividend Div growth Term value 1.04 1.23 1.41 1.60 1.85 0.1544 2.11 0.1450 2.40 0.1355 2.70 0.1261 3.02 0.1166 3.34 0.1072 3.67 0.0978 3.99 0.0883 4.31 0.0789 4.61 0.0694 4.89 0.0600 0.0600 103.57 2025 2026 2027 2.70 3.02 3.34 3.67 Value line forecasts of annual dividends 2028 2029 2030 3.99 4.31 4.61 4.89 108.75 2031 2032 5.18 Transitional period with slowing dividend growth Beginning of constant growth period 35.70 = PV of CF E17 * (1+ F17)/(B5 - F17) NPV(B5,H2:17)