Below are an Excel spreadsheet with the values shown and below that, another sheet with the formulas
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Question:
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.
Related Book For
Elementary Principles of Chemical Processes
ISBN: 978-1119498759
4th edition
Authors: Richard M. Felder, ? Ronald W. Rousseau, ? Lisa G. Bullard
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