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Excel Online structured Activity Censtant growth Open spreadsheet intermediste caloulations. 4 Constant growth begin{tabular}{lr} hline Expected year-end dividend (D1) & $2.00 hline Beta coefficient

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Excel Online structured Activity Censtant growth Open spreadsheet intermediste caloulations. 4 Constant growth \begin{tabular}{lr} \hline Expected year-end dividend (D1) & $2.00 \\ \hline Beta coefficient & 0.90 \\ \hline Risk-free rate ( rRF) & 2.70% \\ \hline Market risk premium (RPM) & 5.50% \\ \hline Current stock price ( P0) & $42.00 \\ \hline Market in equilibrium & Yes \end{tabular} Calculate required return: Required return on common stock Calculate constant growth rate, g : Total return on common stock Expected dividend yield Expected capital gains yield Calculate stock price in 3 years, P3 : Number of years from today Calculate P3 using P0 Formulas 12 13 14 15 16 17 17 18 20 21 22 Altomative colculation: 23 Calculate P3 using dividends 24 25 26 27 30

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