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I need the blank boxes filled in. The correct answers are shown off to the right in black. Ignore the red numbers as they are
I need the blank boxes filled in. The correct answers are shown off to the right in black. Ignore the red numbers as they are used as a test format.
Two-Stage Dividend Growth Model and H-Model Please use following information and solve the Two-Stage Dividend Discount Model and H-Model Problem Suppose a firm has a current dividend of D(O) = $2.00 which is expected to growth 25% a year for 3 years and thereafter grow at the rate of 5 percent with a discount rate or required rate of return of 15 percent $5.00 D(0) N G1 G2 K $2.00 3 25% 5% 15% D(0) N G1 G2 K 30% 10% 20% 1 Two-Stage Dividend Discount Model What is the value of the stock? PO) $ 34.07 $ 87.57 D.(1+9) 1 +91 P = 1- K-9 1+k :)*)*6**)D:(1+3) 2 H-Model What is the value of the stock? Year 1 Year 2 Year 3 Year 4 Growth Rate Dividends Please do not type any Numbers in the table above You must link the table in Cell A6 to this Table First Calculate P(3) $ 34.69 $ 102.88 $2.17 PV of D(1) PV of D(2) PV of D(3) PV of P(3) $ 2.17 $ 2.24 $ 2.17 $ 22.81 $ 5.42 $ 5.57 $ 5.41 $ 59.54 P(O) = $ 29.39 $ 75.93 Sheet1 + Two-Stage Dividend Growth Model and H-Model Please use following information and solve the Two-Stage Dividend Discount Model and H-Model Problem Suppose a firm has a current dividend of D(O) = $2.00 which is expected to growth 25% a year for 3 years and thereafter grow at the rate of 5 percent with a discount rate or required rate of return of 15 percent $5.00 D(0) N G1 G2 K $2.00 3 25% 5% 15% D(0) N G1 G2 K 30% 10% 20% 1 Two-Stage Dividend Discount Model What is the value of the stock? PO) $ 34.07 $ 87.57 D.(1+9) 1 +91 P = 1- K-9 1+k :)*)*6**)D:(1+3) 2 H-Model What is the value of the stock? Year 1 Year 2 Year 3 Year 4 Growth Rate Dividends Please do not type any Numbers in the table above You must link the table in Cell A6 to this Table First Calculate P(3) $ 34.69 $ 102.88 $2.17 PV of D(1) PV of D(2) PV of D(3) PV of P(3) $ 2.17 $ 2.24 $ 2.17 $ 22.81 $ 5.42 $ 5.57 $ 5.41 $ 59.54 P(O) = $ 29.39 $ 75.93 Sheet1 +Step by Step Solution
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