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it is an excel homework PRINCIPLES OF FINANCIAL ANALYSIS SPREADSHEET ASSIGNMENT: Future Value, Rate of Return, Present Value 1. Retrieve the file BUFFETTP.XLS. The book

it is an excel homework

PRINCIPLES OF FINANCIAL ANALYSIS

SPREADSHEET ASSIGNMENT: Future Value, Rate of Return, Present Value

1. Retrieve the file BUFFETTP.XLS. The book value per share of

Berkshire Hathaway Inc. was $19.46 in 1964, as noted in cell

A6. Column D reports the annual growth rate in book value for

the next 51 years.

2. Calculate the book value per share for each year from 1965

through 2015. For example, the computed value in cell E6

equals the original value reported in cell A6 plus the calendar

year growth rate in book value appearing in cell D6. The value

in cell E7 is equal to the computed value in cell E6 plus the

annual growth rate in cell D7. Use the copy command to compute

values for cells E7:E56.

3. Apply the =RATE financial function command in cell F58 to

compute the average annual growth rate in book value per share

from the starting value in cell A6 through the ending value in

cell E56. In applying this command, enter 51 for the total

number of years, zero for PMT and TYPE, and enter a GUESS of

15% or higher.

4. In cell F59 compute the total percentage rate of growth in

book value per share from 1964 to 2015. [Hint: This value is

very large, reflecting Berkshire Hathaway's remarkable record

of owning and investing in companies.]

5. Assume that an investor's proportionate share in Berkshire's

book value was $1,000 at yearend 1964. Apply the =FV financial

function command in cell F60 to calculate the book value

exactly 51 years later. Enter the value computed in cell F58

for RATE. [Hint: The compounded value in cell F58 is very

large.]

6. Apply the =PV financial function command in cell F61 to verify

that the value in cell E56, discounted for 51 years at the

annual rate reported in cell F58, equals the book value per

share in 1964.

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The excel info ( cant attach the file here)

BERKSHIRE HATHAWAY CORPORATE PERFORMANCE
Book Value End of Year
Per Share Annual Change Book Value
in 1964 Year in Book Value Per Share
$19.46 1965 23.8%
1966 20.3%
1967 11.0%
1968 19.0%
1969 16.2%
1970 12.0%
1971 16.4%
1972 21.7%
1973 4.7%
1974 5.5%
1975 21.9%
1976 59.3%
1977 31.9%
1978 24.0%
1979 35.7%
1980 19.3%
1981 31.4%
1982 40.0%
1983 32.3%
1984 13.6%
1985 48.2%
1986 26.1%
1987 19.5%
1988 20.1%
1989 44.4%
1990 7.4%
1991 39.6%
1992 20.3%
1993 14.3%
1994 13.9%
1995 43.1%
1996 31.8%
1997 34.1%
1998 48.3%
1999 0.5%
2000 6.5%
2001 -6.2%
2002 10.0%
2003 21.0%
2004 10.5%
2005 6.4%
2006 18.4%
2007 11.0%
2008 -9.6%
2009 19.8%
2010 13.0%
2011 4.6%
2012 14.4%
2013 18.2%
2014 8.3%
2015 6.4%
Average Annual Growth Rate in Book Value Per Share:
Cumulative Growth Rate in Book Value Per Share:
Future Value of $1,000 in Book Value from 1964-2015:
(Verify) Present Value in 1964 of Book Value in 2015:

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