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 9.90%. (Round your answer to 2 decimal places.)

Intrinsic Value

b. GEs actual beta is 1.01. (Round your answer to 2 decimal places.)

Intrinsic Value

c. The market risk premium is 10.00%. (Round your answer to 2 decimal places.)

Intrinsic Value

Spreadsheet 18.1

Inputs for GE beta mkt Year DividendDiv growth Term valueInvestor CF 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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 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 0.08 0.025 0.1130 0.060 k equ 0.1544 0.1450 0.1355 0.1261 0.1166 0.1072 0.0978 0.0883 0.0789 0.0694 0.0600 0.0600 term 2 Value line 3 forecasts of 4 annual dividends 7 Transitional period B with slowing dividend 103.57 35.701 = PV of CF Beginning of constant E17 (1+ F17B5 F17 th period NPV(B5,H2:H17)