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Write a user-defined function TwoStageEquityValue(r, Div0, Highgrowth, Highgrowthyrs, Normalgrowth) that calculates the share value using two-stage dividend growth model. Suppose that high growth rate is
Write a user-defined function TwoStageEquityValue(r, Div0, Highgrowth, Highgrowthyrs, Normalgrowth) that calculates the share value using two-stage dividend growth model. Suppose that high growth rate is 15% (Highgrowth), which lasts for 5 years (Highgrowthyrs), normal growth rate is 8% (Normalgrowth) and the discount rate (r) is the WACC that you calculate in (h), what is the share value of Microsoft based on two-stage dividend growth model?
Please use VBA coding (Excel) to calculate the share value
Current stock price, Po Current dividend per share $183 2.04 High growth rate, Ghigh Number of high-growth years, m Normal growth rate, Gnormal 15.00% 5 8% r (cost of capital) 9.95% Share Value 0.00Step by Step Solution
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