LO-3: Calculate Time Value of Money, Common Stock Valuation, Bond Valuation, The Cost of Capital, Capital Budgeting, Risk and Capital Budgeting

The Bitcoin Company has a dividend payout ratio of 42%. Next year it will earn $3 per share and have a return on equity of 15%. The shareholders required return is 12%.

a. Calculate the companys growth rate of EPS.

b. Using the earnings model, what is the value of the stock?

c. Construct a table that shows how the value of the stock will change if the ROE ranges between 10% and 20%, in 1% increments. Remember that changing the ROE will also affect the growth rate. Now, using that data, create a scatter chart to show the relationship between the value of the stock and the ROE. Is the relationship linear?

d. Using the constant-growth dividend discount model, what is the value of the stock?

Please answer using file excel andattach the excel file via google drive LINK, and I can download the excel file.