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find the correct Market Implied cost of capital (ROE) in excel using the solver function with the data given below Stock Valuation: 10-Period Growth Model
find the correct Market Implied cost of capital (ROE) in excel using the solver function with the data given below
Stock Valuation: 10-Period Growth Model 3.21% Long run dividend growth rate 12.33% Opportunity Cost of Capital $11.69 Stock Value @ Time Zero $7.26 Current Market Price of Stock $4.43 Stock Value- Market Price Projected Cash Dividend $1.40 End of Period 0 1 2 3 4 5 6 7 8 9 10 1.50 0.00 1.05 1.05 1.10 1.05 1.30 1.40 1.50 1.60 Market Implied Cost of Capital (ROE) Dividend Growth Horizon / Continuing Undiscounted Total Value Cash Flow Rate 7.14% -100.00% N/A 0.00% 4.76% -4.55% 23.81% 7.69% 7.14% 6.67% $18.11 $1.50 0.00 1.05 1.05 1.10 1.05 1.30 1.40 1.50 19.71 Discount Factor Rate 12.33% 1.0000 0.8902 0.7925 0.7055 0.6281 0.5591 0.4978 0.4431 0.3945 0.3512 0.3126 Present Value of Cash Flows $1.34 0.00 .74 .66 .62 .52 .58 55 .53 6.16
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