Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Working on sensitivity analysis for the stock price of Darden Restaurants in excel, I have the following: My inputs are $92.87, using a direct reference

Working on sensitivity analysis for the stock price of Darden Restaurants in excel, I have the following:

image text in transcribedMy inputs are $92.87, using a direct reference to my output (=C100) C100 is a calculation in the proforma model for Price per share (C96 - calculated market value of 12091.48 /C98 - outstanding shares of 130.2)

I then select the whole table and for my row input I select the first cell in Revenue Growth table at the top(2%), and for my column input I select the first cell in my COGS table (16%).

However, I am getting the same price per share for each output. Can you help me determine what I am doing wrong?

COGS Margin Revenue Growth 16% 2% 18% 1% 20% 0% 22% -0.56% $ 92.87 16% $ 18% $ 20% $ 22% $ COGS Margin 2% 92.87 92.87 92.87 92.87 Revenue Growth 1% 92.87 $ 92.87 $ 92.87 $ 92.87 $ $ $ $ $ 0% 92.87 $ 92.87 $ 92.87 $ 92.87 $ - 1% 92.87 92.87 92.87 92.87

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Cheol Eun, Bruce Resnick

7th Edition

0077861604, 9780077861605

More Books

Students also viewed these Finance questions

Question

Describe the features of bonds.

Answered: 1 week ago

Question

1. Check readers and library books. Is there ethnic diversity?

Answered: 1 week ago