Problem 18-15 Calculate the intrinsic value of GE in each of the following scenarios by using the three-stage growth model of Spreadsheet 18.1. Treat each scenario independently. a. The terminal growth rate will be 10.50%. (Round your answer to 2 decimal places.) Intrinsic value b. GE's actual beta is 1.05. (Round your answer to 2 decimal places.) Intrinsic value c. The market risk premium is 10.60%. (Round your answer to 2 decimal places.) Intrinsic value B D Year 1.1 2017 0.08 2018 A 1 Inputs for GE 2 beta mkt_prem 4 rf 5 k_equity 6 term_gwth 7 0.025 2019 0.1130 2020 2021 0.060 2022 8 2023 2024 E G H Dividend Div growth Term value Investor CF 1.04 1.04 1.23 1.23 1.41 1.41 1.60 1.60 1.85 0.1544 1.85 2.11 0.1450 2.11 2.40 0.1355 2.40 2.70 0.1261 2.70 3.02 0.1166 3.02 3.34 0.1072 3.34 3.67 0.0978 3.67 3.99 0.0883 3.99 4.31 0.0789 4.31 4.61 0.0694 4.61 4.89 0.0600 4.89 5.18 0.0600 103.57 108.75 9 10 2025 11 12 13 14 15 16 2026 Value line 2027 forecasts of 2028 annual dividends 2029 2030 2031 Transitional period 2032 with slowing dividend growth Beginning of constant growth period 17 18 19 35.70 = PV of CF 20 E17*(1+F17)/(B5 - F17) 21 NPV(B5, H2:117) 22