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Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon. (Do not round
Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the value of the stock if the current dividend is $1.9, the first stage growth is 18%, the second stage growth is 9%, and the discount rate is 15%? Year 1 Year 2 Year 3 Year 4 Year 5 Projected dividend Terminal price Present value b. What is the value of the stock if the current dividend is $1.9, the first stage growth is 2%, the second stage growth is 13%, and the discount rate is 14.0%? Year 1 Year 2 Year 3 Year 4 Year 5 Projected dividend Terminal price Present value c. What is the value of the stock if the current dividend is $3.8, the first stage growth is 16%, the second stage growth is 8%, and the discount rate is 13%? Year 1 Year 2 Year 3 Year 4 Year 5 Projected dividend Terminal price Present value
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