Question
If you have built the model correctly, you will have a total amount raised of $19,872,064 given the following inputs: Dividend at year 0 =
If you have built the model correctly, you will have a total amount raised of $19,872,064 given the following inputs:
- Dividend at year 0 = $3.55
- Dividend Growth rate during years 1-10 = 5.5%
- 2nd Stage Terminal dividend growth rate = 3.5%
- Expected return =8.9%
- Total shares of stock = 250,000
Step 1: | |||
Make a box that includes all of the inputs (make the input values blue) | |||
Step 2: | |||
Make a timeline that will contain cash flows | |||
Step 3: | |||
Use a formula so that the inputs generate a cash flow on your timeline |
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Explanation of how to calculate the total amount raised based on the given inputs Step 1 Create a box and label it Inputs Inside the box list the foll...Get Instant Access to Expert-Tailored Solutions
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
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