Create a user-defined function to calculate the value of a common stock using the earnings model that

Question:

Create a user-defined function to calculate the value of a using the earnings model that was introduced in Chapter 8 on page 246.
a. What arguments will you need to accept in order to implement equation (8-13) exactly as it is displayed?
b. Now change your function so that it requires the retention ratio, instead of the expected retained earnings.
c. Use your function to solve parts a and b of problem 1 on page 259.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...