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I need this in the next 50 minutes! If anybody could help please let me know. Ill be working on it as well A 1
I need this in the next 50 minutes! If anybody could help please let me know. Ill be working on it as well
A 1 1 2 3 4 5 6 B C D E Given the following data, construct a table of cash flows assuming that you would sell the stock at the end of year n (just after the last dividend payment). It is assumed that the stock cash flow (dividend) will grow at gs until the end of period n, then grow at g forever afterward. Then answer the following questions in the Blackboard Quiz. Remember: When grading, I can change the values of these six cells to any reasonable values. 7 8 9 10 Before you go any further, enter the data from the Blackboard Quiz into the six cells immediately below: CF1 = 11 g= 12 k= 3.05 2.30% 7.75% n= gs = Pactual 10 16.10% 62.36 13 a. 15 b. 16 c. 17 d. 14 18 19 What is the sum of the PVs of the first n cash Flows? What is the future value of the perpetuity value? What is the estimated value of the price of the stock? What value would k have to be in order for your model compute the estimated price to equal the value in cell Pactual (E10)? 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A 39 40 41 42 43 44 B C 18 19 20 21 22 D E A 1 1 2 3 4 5 6 B C D E Given the following data, construct a table of cash flows assuming that you would sell the stock at the end of year n (just after the last dividend payment). It is assumed that the stock cash flow (dividend) will grow at gs until the end of period n, then grow at g forever afterward. Then answer the following questions in the Blackboard Quiz. Remember: When grading, I can change the values of these six cells to any reasonable values. 7 8 9 10 Before you go any further, enter the data from the Blackboard Quiz into the six cells immediately below: CF1 = 11 g= 12 k= 3.05 2.30% 7.75% n= gs = Pactual 10 16.10% 62.36 13 a. 15 b. 16 c. 17 d. 14 18 19 What is the sum of the PVs of the first n cash Flows? What is the future value of the perpetuity value? What is the estimated value of the price of the stock? What value would k have to be in order for your model compute the estimated price to equal the value in cell Pactual (E10)? 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 A 39 40 41 42 43 44 B C 18 19 20 21 22 D E A 1 1 2 3 4 5 6 B C D E Given the following data, construct a table of cash flows assuming that you would sell the stock at the end of year n (just after the last dividend payment). It is assumed that the stock cash flow (dividend) will grow at gs until the end of period n, then grow at g forever afterward. Then answer the following questions in the Blackboard Quiz. Remember: When grading, I can change the values of these six cells to any reasonable values. 7 8 9 10 Before you go any further, enter the data from the Blackboard Quiz into the six cells immediately below: CF1 = 3.05 10 n= 11 g= 12 k= 2.30% 7.75% gs = Pactual 16.10% 62.36 13 a. b. 16 c. 17 d. 14 15 18 19 What is the sum of the PVs of the first n cash Flows? What is the future value of the perpetuity value? What is the estimated value of the price of the stock? What value would k have to be in order for your model compute the estimated price to equal the value in cell Pactual (E10)? 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Year 1 2 3 4 5 6 7 8 9 10 10 12 13 14 15 16 17 18 19 Dividend 3.05 3.54 4.11 4.77 5.54 6.43 7.47 8.67 10.07 11.69 219.42 Growth rate 0.161 0.161 0.161 0.161 0.161 0.161 0.161 0.161 0.161 0.161 0.023 PV Factor 0.93 0.86 0.80 0.74 0.69 0.64 0.59 0.55 0.51 0.47 0.47 A 41 42 43 44 B C 20 21 22 D EStep by Step Solution
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