A B C D E G H J K CHAPTER 7 - EXCEL EXERCISE This week please find the current price of each stock. I have provided you with the required return "r" and the dividend information. Please fill in the blue highlighted cells with a formula that solves each situation. ABC Stock Dividend Information Will pay dividends for the next 5 years. A different amount each year and then never again. Year 2 3 5 Dividend Amount $25 $35 $45 $55 $70 Requred Return = 7.0% Current Price = GRW Stock Dividend Information Just Paid a $2 dividend and will growth the dividend at a rate of 5% forever Last Dividend $2 Dividend Growth Rate 5% Requred Return = 10.0% Current Price = 25 26 PREF Stock Dividend Information A preferred Stock will pay a $12 dollar dividend in perpetuity 28 Dividend Amount $12 29 30 Requred Return = 8.5% 31 Current Price = 32 33 35 SG Stock 36 Dividend Information The Next Dividend Paid will be $7.50 and will growth the dividend at a rate of 8% forever 37 Last Dividend $7.50 38 Dividend Growth Rate 8% 39 40 Requred Return = 15.0% 41 Current Price = 42 43 44