Question: Can you please help me understand how to solve this in excel? 2. Calvin Inc. earned $2.00 per share during the past year and has

 Can you please help me understand how to solve this in

Can you please help me understand how to solve this in excel?

excel? 2. Calvin Inc. earned $2.00 per share during the past year

2. Calvin Inc. earned $2.00 per share during the past year and has just paid a dividend of $0.40 per share. Investors forecast that Calvin will continue to retain 80% of its earnings for the next four years and that earnings will grow at 25% per year through year 5. The dividend payout ratio is expected to be raised in year 5 to 50%, reducing the dividend growth rate to 8% thereafter. If Calvin's equity beta is 0.9, the risk-free rate is 8.5%, and the market risk premium is 8%, what should its price be today

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