Question: 7. Often it is useful to perform a sensitivity analysis, in which you show how your estimate of intrinsic value varies according to different estimates

7. Often it is useful to perform a sensitivity analysis, in which you show how your estimate of intrinsic value varies according to different estimates of D1, rs, and g. To do so, recalculate your intrinsic value estimate for a range of different estimates for each of these key inputs. One convenient way to do this is to set up a simple data table in Excel. Refer to the Excel tutorial accessed through the textbook’s Web site for instructions on data tables. On the basis of this analysis, what inputs justify the current stock price?

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