Question: Create a user-defined function to calculate the value of a common stock using the earnings model that was introduced in Chapter 9 on page 266.

Create a user-defined function to calculate the value of a common stock using the earnings model that was introduced in Chapter 9 on page 266.

a. What arguments will you need to accept in order to implement equation (9-13) 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 278.

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