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In Tab 9-5, please complete the following activities. Oviedo Paper, Inc. is a major producer of paper products. Due to its immensely popular new stationery

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In Tab 9-5, please complete the following activities. Oviedo Paper, Inc. is a major producer of paper products. Due to its immensely popular new stationery product, analysts expect that the firm's earnings and dividends will grow at a rate of 15% per year for the next five years. After that, analysts expect that the firm's growth rate will decline to its historical value of 8% per year as competitors launch similar products. If Oviedo Paper recently paid a dividend (D0) of $0.35, and your required return is 12%. What is the value of the stock today, using a two-stage growth model? Vcs=Kcsg1D0(1+g1)[1(1+Kcs1+g1)n]+(1+KcS)nKCSg2D0(1+g1)n(1+g2) Formula: =B2(1+B3)/(B6B3)(1((1+B3)/(1+B6))B5)+((B2(1+B3)B5(1+B4))/(B6 B4))/(1+B6)B5 PV: =PV((1+B6)/(1+B3)1,B5,B2(1+B3))/(1+B3)+B2(1+B3)B5(1+B4)/(B6 B4)/(1+B6)B5 If FameFncs Add-in installed successfully, you might use the following FAME: =FAME_TwoStageValue(B2* (1+B3),B6,B3,B4,B5)

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