AutoSave Excel Assignment Spring 2021.xlsx - Excel Search A Joseph Wah File Home Insert Page Layout Formulas Data Review View Developer Help Calibri 11AA = 29 Wrap Text General 4 X LG HH Paste BIU - - - A Merge & Center - $ % & ": Conditional Format as Cell Insert Delete Format Formatting Table Styles Clipboard Font Alignment Number Styles Cells A B D E F G H 1 K M N O GREEN Cells are assumptions. Do not change these numbers BLUE Cells are calculations.com Red H. WE HAVE Assumption Block: MS is a Constant Growth Company Do = S $ 3.00 g= 5% MS's Beta = 1.2 - TRF = 2% 1 IM= 11% 2 3 1. Calculate the market risk premium (RPM), the risk premium for MS stock (RPMs), and MS's required rate of return 4 see p. 295 of the textbook for help with this problem 5 RPM 6 RPMS 7 IMS 8 9 2. Calculate MS's expected dividend stream over the next 3 years 20 see chapter 9 for help with problems 2 through 8 21 D D2 D3 22 23 Sheet1 3 - c ** a M Type here to search @ ce H X Calibri 11 - A BLU-ALA- 1101 e 140 IM Paste Alignmen G F Clipboard Font B D E 24 3. Calculate MS's intrinsic value as of time zero (P-hata) 25 26 P-hat, 27 28 4. Calculate MS's intrinsic value as of year one (P-hat) 29 30 P-hat, 31 32 5. Calculate MS's expected dividend yield in year 1 33 34 DY,= 35 36 6. Calculate MS's expected capital gains yield in year 1 37 38 CGY, 39 40 7. Calculate MS's expected total return in year 1 41 42 TRE 43 44 8. Calculate MS's intrinsic value as of year three (P-hat) 45 46 p.hat, Sheet1 Paste B T U All Font Clipboard D E F 24 3. Calculate MS's intrinsic value as of time zero (P-hat.) 26 P-hat, 28 4. Calculate MS's intrinsic value as of year one (P-hat) 29 30 P-hat, = 31 32 5. Calculate MS's expected dividend yield in year 1 33 34 DY, = 35 36 6. Calculate MS's expected capital gains yield in year 1 38 CGY = 39 40 7. Calculate MS's expected total return in year 1 42 TR = 43 44 8. Calculate MS's intrinsic value as of year three (P-hatz) 4.5 46 P-hat; = Sheen File Home Page Layout Formas Det Review View Developer Help X Calibri - Cal 111 AA - A = 25 wapi Merge Centre Pach Incet Drivelor B S - % Conditions For Cel Formatge Syles Alent Net 11 L M N P Clipboard Tont 5 4 A D 1 Macrosoft (MS) is a computer software compuny 2 Use the template below to calculate the newested values. 3 KamCells are assumptions 4 E cells are calculations 5 Asumption Bloch: 6. MS is a Constant Growth Company D. B 9IMS Rota 10 11 IN 12 13 1. Calculate the market riik premium (RP.. the risk pre for MS stock(R) and MS's required rate of return 16 veep. 235 of the textbook for help with this problem 15 RPG 16 RP SZI 18 19 2. Calculate MS's expected dividend stream over the next years 20 see chapter for help with problems through 21 D. D. D. 23 Sheet 3 o 1 . # 11 Type bere to search