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.)

Inputs for GE beta mkt prem rf k_equity term_gwth 1.1 0.08 0.025 0.1130 0.060 Year 2017 2018 2019 2020 2021 2022 2023 2024 2025 Dividend Div growth Term value Investor CF 1.04 1.04 1.23 1.23 1.41 1.41 1.60 1.60 1.85 0.1544 1.85 2.11 0.1450 2.11 2.40 0.1355 2.40 2.70 0.1261 2.70 3.02 0.1166 3.02 3.34 0.1072 3.34 3.67 0.0978 3.67 3.99 0.0883 3.99 4.31 0.0789 4.31 4.61 0.0694 4.61 2026 2027 Value line forecasts of annual dividends 2028 2029 2030 2031 0.0600 4.89 5.18 4.89 108.75 2032 0.0600 103.57 Transitional period with slowing dividend growth Beginning of constant growth period 35.70 = PV of CF E17*(1+F17)/(B5 - F17) NPV(B5,H2:H17)