Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions