R2: Stock Valuation - Nonconstant Growth

Stock Valuation - Nonconstant Growth Assumption Calculate the value of the stock under the nonconstant growth assumption Do not round any calculations $ Required Rate of Return: Most recent Dividend: Analysis Period growth rate: Horizon Period growth rate: 9.2% 4.24 5.0% Years 1-4 2.5% infinite begins at year 5 Analysis Period Years 2 3 horizon 1 4 Dividend: PV of Div Value as ordinary perpetuity at t=4 (first dividend being your calculation in cell H15) PV of Analysis Period: PV of Horizon Period Stock Value: sum of the PVs of the dividends in the analysis period discount the value you calculated in cell H16 back to t=0