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I am very confused with financial excel, but if you succeed then I am very happy, so my question is 1) explain in detail what
I am very confused with financial excel, but if you succeed then I am very happy, so my question is 1) explain in detail what the figure wants to convey to the reader along with the grow rate and req returned, if the grow rate is higher than the req return and vice versa what will happen and don't forget what it is used for in everyday life if I work as a finance what can I learn from the excel data
EXHIBIT 8-4 THE INFINITE HOLDING PERIOD IS JUST FOR SIMPLICITY A B D E F H 1 Infinite Holding Period Assumption 2 Period Dividends Present Value Growth Rate 7% 3 1 0.00 $0.00 Req. Return 15% 4 2 0.00 $0.00 The Value of ABC Common Stock 5 3 0.00 $0.00 $14.00 as More Dividends are included 6 4 1.50 $0.86 7 5 $12.00 1.61 $1.66 8 6 1.72 $2.40 $10.00 9 7 1.84 $3.09 $8.00 10 8 1.97 $3.73 $6.00 11 9 2.10 $4.33 $4.00 12 10 2.25 $4.89 $2.00 13 11 2.41 $5.40 $0.00 14 12 2.58 $5.89 20 40 60 80 100 120 15 13 2.76 $6.33 Number of Dividends Included in Valuation $ per Share 0 EXHIBIT 8-4 THE INFINITE HOLDING PERIOD IS JUST FOR SIMPLICITY A B D E F H 1 Infinite Holding Period Assumption 2 Period Dividends Present Value Growth Rate 7% 3 1 0.00 $0.00 Req. Return 15% 4 2 0.00 $0.00 The Value of ABC Common Stock 5 3 0.00 $0.00 $14.00 as More Dividends are included 6 4 1.50 $0.86 7 5 $12.00 1.61 $1.66 8 6 1.72 $2.40 $10.00 9 7 1.84 $3.09 $8.00 10 8 1.97 $3.73 $6.00 11 9 2.10 $4.33 $4.00 12 10 2.25 $4.89 $2.00 13 11 2.41 $5.40 $0.00 14 12 2.58 $5.89 20 40 60 80 100 120 15 13 2.76 $6.33 Number of Dividends Included in Valuation $ per Share 0Step by Step Solution
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