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MUST BE ANSWERED USING EXCEL!!! I will happily up vote if the answer is detailed and ONLY IF IT IS DONE USING EXCEL!!!! Please explain
MUST BE ANSWERED USING EXCEL!!! I will happily up vote if the answer is detailed and ONLY IF IT IS DONE USING EXCEL!!!! Please explain if possible.
10. The forecasted earnings and dividends for Growth-Tech are as follows: Year 2. 3 Book equity 10.00 12.00 14.40 15.55 Earnings per share (EPS) 2.50 3.00 2.30 2.48 Return on equity (ROE) 0.25 0.25 0.16 0.16 Payout ratio 0.20 0.20 0.50 Dividends per share (DIV) 0.50 0.60 1.15 1.24 Growth rate of dividends (%) 20 92 8 0.50 The opportunity cost of capital is r = 0.12. The growth rate in year 4 remains constant thereafter. a) Calculate the value of Growth-Tech stock. b) What part of the stock value reflects the discounted value of P3, the price forecasted for year 3? c) What part of P3 reflects the present value of growth opportunities (PVGO) after year 3Step by Step Solution
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