Recalculate the intrinsic value of GE using the three-stage growth model of Spreadsheet 13.1 (available in Connect;

Question:

Recalculate the intrinsic value of GE using the three-stage growth model of Spreadsheet 13.1 (available in Connect; link to Chapter 13 material). Treat each of the following scenarios independently.
a. ROE in the constant-growth period will be 15%.
b. GE's actual beta is 1.10.
c. The market risk premium is 8.5%.