Hey, I understand that the answers are on images, but my professor sucks at teaching and I need these explained. It would be very helpful if someone could explain how to input these into excel and what number means what. I don't understand any of these questions at all so I will take all the help I can get! Thank you for taking the time to read this question!

\# 19. Constant-Growth Model. Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. If r=15% and DIV 1=$3, what is the value of a share? P0=3/{(.15(.10)}=$12 What price do you forecast for the stock next year? P1=D2/(rg)=D1(I+g)/(rg)=3{1+(.10)}/{.15(.10)}=$10.80 What is the expected rate of return on the stock? r=3/12+(.10)=.25.10=15% Can you distinguish between "bad stocks" and "bad companies"? Does the fact that the industry is declining mean that the stock is a bad buy? This is a bad company not bad stock! A good buy! c. What is the expected stock price 3 years from now? P3=D4/(rg)=D0(I+g)4/(rg)=$1(1.04)4/(.12.04)=$14.62 If you buy the stock and plan to sell it 3 years from now, what are your expected cash flows in (i) year 1 ; (ii) year 2 ; (iii) year 3 ? D1, D2 , D3 and P3 What is the present value of the stream of payments you found in part (d)? Compare your answer to part (b). PV=1.04/1.12+1.0816/1.122+1.1249/1.123+14.62/1.123=$13 \#2. Bond Yields. A 30-year Treasury bond is issued with face value of $1,000, paying interest of $60 per year. If market yields inerease shortly after the T-bend is issued, what happens to the bond's: N=30,C=60,rc=6%.Ifr coupon rate? rc=6%(Constant) b. price? \# 19. Constant-Growth Model. Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 10% per year. If r=15% and DIV 1=$3, what is the value of a share? P0=3/{(.15(.10)}=$12 What price do you forecast for the stock next year? P1=D2/(rg)=D1(I+g)/(rg)=3{1+(.10)}/{.15(.10)}=$10.80 What is the expected rate of return on the stock? r=3/12+(.10)=.25.10=15% Can you distinguish between "bad stocks" and "bad companies"? Does the fact that the industry is declining mean that the stock is a bad buy? This is a bad company not bad stock! A good buy! c. What is the expected stock price 3 years from now? P3=D4/(rg)=D0(I+g)4/(rg)=$1(1.04)4/(.12.04)=$14.62 If you buy the stock and plan to sell it 3 years from now, what are your expected cash flows in (i) year 1 ; (ii) year 2 ; (iii) year 3 ? D1, D2 , D3 and P3 What is the present value of the stream of payments you found in part (d)? Compare your answer to part (b). PV=1.04/1.12+1.0816/1.122+1.1249/1.123+14.62/1.123=$13 \#2. Bond Yields. A 30-year Treasury bond is issued with face value of $1,000, paying interest of $60 per year. If market yields inerease shortly after the T-bend is issued, what happens to the bond's: N=30,C=60,rc=6%.Ifr coupon rate? rc=6%(Constant) b. price