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Need help figuring out the correct Terminal price and present value: Design a spreadsheet similar to the one below to compute the value of a
Need help figuring out the correct Terminal price and present value:
Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon. a. What is the value of the stock if the current dividend is $1.1, the first-stage growth is 18%, the second-stage growth is 9%, and the discount rate is 15% ? b. What is the value of the stock if the current dividend is $1.1, the first-stage growth is 1%, the second-stage growth is 8%, and the discount rate is 9.0% ? c. What is the value of the stock if the current dividend is $2.2, the first-stage growth is 14%, the second-stage growth is 7%, and the discount rate is 13% ? Complete this question by entering your answers in the tabs below. What is the value of the stock if the current dividend is $1.1, the first-stage growth is 1.1%, the second-stage growth is [a(7)\%, and the discount rate is 9% ? Note: Do not round intermediate calculations. Round your answers to 2 decimal places
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