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STOCK MODEL If you have built the model correctly, you will have a total amount raised of $19,872,064 given the following inputs: Dividend at year

STOCK MODEL

If you have built the model correctly, you will have a total amount raised of $19,872,064 given the following inputs:

  • Dividend at year 0 = $3.55
  • Dividend Growth rate during years 1-10 = 5.5%
  • 2nd Stage Terminal dividend growth rate = 3.5%
  • Expected return =8.9%
  • Total shares of stock = 250,000
Step 1:

Make a box that includes all of the inputs (make the input values blue)

Step 2:

Make a timeline that will contain cash flows

Step 3:

Use a formula so that the inputs generate a cash flow on your timeline

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