Question: Calculate current market price using NPV 5 Current Dividend, DO 6 Stage 1 growth rate, gl 7 Length of stage 1 (in yrs) 8 Stage
Calculate current market price using NPV
5 Current Dividend, DO 6 Stage 1 growth rate, gl 7 Length of stage 1 (in yrs) 8 Stage 2 growth rate, g2 9 Req. rate of return 10 11 Outputs: 13 14 15 16 17 18 Current Market Price 19 20 21 22 Total Year Dividends Terminal Price $ 3.00 25% 10 3% 10% 0 NPV(B6) $ $ 1 3.75 $ 3.75 5 I 2 4.69 $ 4.69 5 3 5.86 5 5.86 5 4 7.32 S 7.32 S 6 5 7 8 9.16 $11.44 $ 14.31 5 17.88 $ 22.35 9.16 $11.44 $14.31 5 17.88 $ 22.35 10 $ 27.94 $411.11 $439.05
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To calculate the current market price using the Net Present Value NPV method we need to discount the ... View full answer
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