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please fill out all the boxes a clearer picture of it Test your skills 1 What would you pay today for a stock that is

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Test your skills 1 What would you pay today for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 3% and you require a 15 % return on your investment? Fill in the known inputs in cells El124:E126 D r Formula: P,-Di/(r-g) Po In cell E130 write the formula by clicking on the cells or by typing in the values. Remember the () and /and-. 2 What would you pay today for a stock whose most recent dividend is $1, dividends are expected to grow at 7% indefinitely and the required return is 9.1 %2 D-D (1+g) D D We first find next year's dividend, D. 6 Formula: PoD/(r-g) 7 8 D 9 1 2 3 54 55 56 End of Spreadsheet 8. Don't forget to enter your name & print. Pe Then we find today's price. Test your skills: 1 What would you pay today for a stock that is expected to make a $1.50 dividend in one year if the expected dividend growth rate is 3% and you require a 15 % return on your investment? Fill in the known inputs in cells El124:E126 D r Formula: PD/(r-g) In cell E130 write the formula by clicking on the cells or Po by typing in the values. Remember the () and /and- 2 What would you pay today for a stock whose most recent dividend is $1, dividends are expected to grow at 7% indefinitely and the required return is 9.1 % Di-D, (+p) D We first find next year's dividend, D D Formula: PoD/(r-g) 6 7 Di 8 1 2 3 54 55 56 End of Spreadsheet 8. Don't forget to enter your name & print. Then we find today's price Po

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