Question: Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon. A. What is
Design a spreadsheet similar to the one below to compute the value of a variable growth rate firm over a five-year horizon.
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A. What is the value of the stock if the current dividend is $1.30, the first stage growth is 18%, the second stage growth is 9%, and the discount rate is 11%?
B. What is the value of the stock if the current dividend is $1.30, the first stage growth is 2%, the second stage growth is 8%, and the discount rate is 9.5%?
C. What is the value of the stock if the current dividend is $2.50, the first stage growth is 15%, the second stage growth is 7%, and the discount rate is 10%?
Inputs Current Dividend = 3 First Stage Growth- 4 Second Stage Growth Discount Rate Year 1 4 5 Projected Dividend 8 3 10 Terminal Price Present Value-
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