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Please show in Excel. Thank you 3. You have been asked to calculate the dividend discount model-based price per share for the three airlines shown
Please show in Excel. Thank you
3. You have been asked to calculate the dividend discount model-based price per share for the three airlines shown above. You know the following for 2019: Firm Dividend Growth/year Eastern 2.00 2.0% Western 1.50 2.5% 3.0% Northern 1.20 You already know their WACCs, so you can use them to present value the stream of dividends. Remember that the terminal value uses the perpetuity formula and that it automatically shows the value as of the beginning of the year when it is calculated! A D 1 1 B 2019 Dividends Dividends Growth/yr. 2 3 Eastern 4. Western 5 Northern 6 7 Dividend Stream 2020 8 2021 TV 9 Eastern 10 Western 11 Northern 12 13 DDM Value of each Firm $/share 14 15 Eastern 16 Western 17 Northern Eastern Western Northern Weighed Average Cost of Capital WACC 5.85 5.46 5.70Step by Step Solution
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