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Hello, can you please use excel and show formula thank you. and please dont answer unless both questions are answered please! Task 1: Stock Valuation
Hello, can you please use excel and show formula thank you. and please dont answer unless both questions are answered please!
Task 1: Stock Valuation Ecolab, Inc., is growing rapidly and now you need to estimate the value of its common stock. Dividends are expected to grow at a rate of 20 percent for the next five years, with the growth rate falling off to a constant 4 percent thereafter. Required return is 9 percent, and the company just paid a dividend of $1.20. Questions: 1. What is the estimated terminal value? (5 point) 2. What is the estimated current share price of Ecolab? (5 point) Calculation & Output Year 1 1.44 Year 2 Year 3 1.73 2.08 Year 4 2.50 Dividends Terminal Value PV of CFs Year 5 3.00 62.11 Question 1 Terminal Value Question 2 Current Share Price Step by Step Solution
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