Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I apologize if this is confusing, the first two pictures are of the same spread sheet, top pic is start of it and second pic

image text in transcribedimage text in transcribedimage text in transcribed

I apologize if this is confusing, the first two pictures are of the same spread sheet, top pic is start of it and second pic is end of spreadsheet, I just didn't have enough space to include it on one picture. Please find a dividend-paying stock, and use the DDM to compute its intrinsic value, thank you!

A B D E F H 1 J K Company name 2 3 4. Scenario 1 5 normal case 2016 0 2017 0 2018 0 2019 0 2020 0 2021 0 2022 0.00 2023 0.00 2024 0.00 1 6 year Dividend Growth rate PV INTRINSIC VALUE 7 in USD 0.00 0.00 0.00 8 9 10 2016 0 2017 0 2018 0 2020 0 2019 0 A 2021 0 2022 0.00 2023 0.00 11 Scenario 2 12 best case 13 14 in USD 15 2024 0.00 year Dividend Growth rate PV Present value sum 0.00 0.00 0.00 16 17 2016 0 2017 0 2018 0 2019 0 2020 0 2021 0 2022 0.00 2023 0.00 2024 0.00 18 Scenario 3 19 worst case 20 21 in USD 22 23 year Dividend Growth rate PV Present value sum 0.00 0.00 0.00 24 Part Probability PV 0 25 Scenario Scenario 1 (normal case) Scenario 2 (best case) Scenario 3 (worst case) 26 OOO 27 28 Sum O K L M N O Q R S T U V w 1 input cells result cell 2 3 Terminal Value 2031 0.00 2024 0.00 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2031 0.00 2030 0.00 14 5 6 6 .7 Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0% Discount rate Terminal multiple 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8 9 10 2024 (11 12 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2030 0.00 2031 0.00 Terminal Value 2031 0.00 0.00 Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0 Discount rate Terminal multiple 13 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A 0% 15 16 17 Terminal Value 2024 0.00 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2030 0.00 2031 0.00 18 19 20 .21 2031 0.00 A A Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0% Discount rate Terminal multiple 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 23 24 25 26 + Sheet1 Sheet2 3.7 3.6 1 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 3.3 0.8 5-Oct-21 2-Jul-21 5-Apr-21 5-Jan-21 5-Oct-20 2-Jul-20 3-Apr-20 3-Jan-20 3-Oct-19 3-Jul-19 4-Apr-19 3-Jan-19 4-Oct-18 5-Jul-18 5-Apr-18 4-Jan-18 5-Oct-17 3-Jul-17 4-Apr-17 4-Jan-17 4-Oct-16 1-Jul-16 4-Apr-16 4-Jan-16 2.48 2.04 0.8 0.56 0.56 0.56 0.56 0.5 0.5 0.48 0.48 0.48 0.44 0.44 1.84 A B D E F H 1 J K Company name 2 3 4. Scenario 1 5 normal case 2016 0 2017 0 2018 0 2019 0 2020 0 2021 0 2022 0.00 2023 0.00 2024 0.00 1 6 year Dividend Growth rate PV INTRINSIC VALUE 7 in USD 0.00 0.00 0.00 8 9 10 2016 0 2017 0 2018 0 2020 0 2019 0 A 2021 0 2022 0.00 2023 0.00 11 Scenario 2 12 best case 13 14 in USD 15 2024 0.00 year Dividend Growth rate PV Present value sum 0.00 0.00 0.00 16 17 2016 0 2017 0 2018 0 2019 0 2020 0 2021 0 2022 0.00 2023 0.00 2024 0.00 18 Scenario 3 19 worst case 20 21 in USD 22 23 year Dividend Growth rate PV Present value sum 0.00 0.00 0.00 24 Part Probability PV 0 25 Scenario Scenario 1 (normal case) Scenario 2 (best case) Scenario 3 (worst case) 26 OOO 27 28 Sum O K L M N O Q R S T U V w 1 input cells result cell 2 3 Terminal Value 2031 0.00 2024 0.00 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2031 0.00 2030 0.00 14 5 6 6 .7 Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0% Discount rate Terminal multiple 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8 9 10 2024 (11 12 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2030 0.00 2031 0.00 Terminal Value 2031 0.00 0.00 Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0 Discount rate Terminal multiple 13 14 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A 0% 15 16 17 Terminal Value 2024 0.00 2025 0.00 2026 0.00 2027 0.00 2028 0.00 2029 0.00 2030 0.00 2031 0.00 18 19 20 .21 2031 0.00 A A Growth rate 0% next 5 years 0% 5 to 10 years 0% after 10 years 0% Discount rate Terminal multiple 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 23 24 25 26 + Sheet1 Sheet2 3.7 3.6 1 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.8 0.8 3.3 0.8 5-Oct-21 2-Jul-21 5-Apr-21 5-Jan-21 5-Oct-20 2-Jul-20 3-Apr-20 3-Jan-20 3-Oct-19 3-Jul-19 4-Apr-19 3-Jan-19 4-Oct-18 5-Jul-18 5-Apr-18 4-Jan-18 5-Oct-17 3-Jul-17 4-Apr-17 4-Jan-17 4-Oct-16 1-Jul-16 4-Apr-16 4-Jan-16 2.48 2.04 0.8 0.56 0.56 0.56 0.56 0.5 0.5 0.48 0.48 0.48 0.44 0.44 1.84

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_2

Step: 3

blur-text-image_3

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

The Charles Schwab Guide To Finances After Fifty

Authors: Carrie Schwab-Pomerantz, Joanne Cuthbertson

1st Edition

0804137366, 978-0804137362

More Books

Students also viewed these Finance questions