Below are an Excel spreadsheet with the values shown and below that, another sheet with the formulas shown. The spreadsheet is used to calculate intrinsic value using the Non-zero Growth Model. Choose the answer that states the principles of spreadsheet design that are violated in this spreadsheet.

	A	B
1	Required return	0.13
2	Growth rate	0.10
3	Current dividend	1.00
4
5	Output
6	Next year's dividend	$1.10
7	Intrinsic value	$36.667

	A	B
1	Required return	0.13
2	Growth rate	0.10
3	Current dividend	1.00
4
5	Output
6	Next year's dividend	=1*(1+B2)
7	Intrinsic value	=B6/(B1-B2)

Group of answer choices

Identify all areas as input or output areas and do not hardcode a variable in a formula.

None of the answers is correct.

Minimize the number of input areas and a model is not completed until it has been audited for proper functioning.

Save your file often to two different storage places and enter a variable directly only once.