Please show work in excel. My filled in answers are correct.

B D E F G H j L M 10 Please use the following information to answer the questions concerning stocks that follow. 11 12 You are considering purchasing shares of a publicly traded company. The next dividend paid by the company will be $3.68. The appropriate equity cost of capital for the company is 7.6%. 13 The company is currently experiencing irregular growth, and the expected growth rates for the next 7 years are listed below. After this period of irregular growth passes, 14 the company expects growth to stabilize at a long run growth rate of 4.0%. 15 16 Year Growth Rate 17 1 18.0% 18 2 11.0% 19 3 14.0% 20 4 14.0% 21 5 15.0% 22 6 13.0% 23 7 7 18.0% 24 25 26 Part I: How many years of abnormal growth is this company expecting? 27 28 Years 7 29 30 31 Part II: Based on your answer to Part I, how many dividends will we need to forecast in order to price this company? 32 33 Div Count 7 34 25 35 36 Part III: Please fill in the table below with the dividends necessary (according to your answer from Part II). Note that precision matters (i.e. you are not allowed to round), and that the chart may have more columns than necessary. 37 Part IV: After forecasting the dividends, please calculate the present value of *only* the abnormal dividends in the chart provided. 38 39 Year 1 2 3 5 6 7 8 40 Dividend $4.34 $4.82 $5.49 $6.26 $7.20 $8.14 $9.61 4 9 10 41 7 8 9 10 42 Cash Flow 1 2 3 5 6 43 Present Value 44 45 AG part1.racultathamachusalontafell thatatleri discidade Notathat this will not be put timtorm and will not runt for the boormal diseidonda Part V: Calculate the cash equivalent of all the constantly growing dividends. Note that this will not be in PV at time 0 terms, and will not account for the abnormal dividends. Cash Equivalent = Part VI: What is the present value of the cash equivalent from Part V? Cash Equivalent = Part VII: What is the price of the stock of this company today? Price Part VIII: If the company was not expected to experience abnormal growth, but instead was expected to grow at only the long run growth rate, what dividend value would the company pay at the end of the first year? Note that you may or may not) need to calculate this. New D1 = Part IX: Using the information from Part VIII, and still assuming the company experiences only the constant long run growth rate, what would the price of the stock be in the market today? Price = $ Part X: By how much has the abnormal growth of the firm changed the value of the stock? Price Difference