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please use excel for the following. Thank you! Better Mousetraps has come out with an improved product, and the world is beating a path to
please use excel for the following. Thank you!
Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects growth of 20% per year for 4 years. By then, other firms will have copycat technology, competition will drive down profit margins, and the sustainable growth rate will fall to 5%. The most recent annual dividend was DIVO = $1 per share. Compute the value of Better Mousetraps for assumed sustainable growth rates of 6% through 9%, in increments of 0.5% and compute the percentage change in the value of the firm for each 1 percentage point increase in the assumed final growth rate, g, using a required rate of return of 10%. Note: Do not round intermediate calculations. Round your answers to 2 decimal placesStep by Step Solution
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