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please do in excel and show how you got the answer in excel The following is information on Abbvue Inc.'s income statement and comparable companies.
please do in excel and show how you got the answer in excel
The following is information on Abbvue Inc.'s income statement and comparable companies. --The company's dividend payout ratio is 55% of net income and the company has 137,500 shares outstanding. --The dividend is expected to increase by 8.0% next year, 6.0% the following year and then increase at a constant rate of 3.0% into perpetuity --Investors require an annual return of 12.5% on the stock --The current year income statement for Abbvue is below What is the market value of a share of Abbvue's stock using the dividend discount model? SHOW YOUR WORK Abbvue Revenue COGS Gross profit G&A Depreciation BIT nterest EBT ax @25% Het Income Current year $ 8,250,000 5,775,000 2,475,000 1,090,000 435,000 950,000 150,000 800,000 200,000 $ 600,000Step by Step Solution
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