Question: Could you help with this question, please include the excel formulas to each calculation Problem 7: Two-Stage Dividend Growth Model Navel County Choppers, Inc. is
Could you help with this question, please include the excel formulas to each calculation
Problem 7: Two-Stage Dividend Growth Model Navel County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 11 years before leveling off at 4 percent into perpetuity. The required return on the company's stock is 10 percent. The dividend per share just paid was $1.94. What is the stock's current price? Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers. = Current Dividend (DO) Number of years Growth Rate (1) Growth Rate after 11 years (92) Required Return $1.94 11 17% 4% 10% Years 1 2 3 4 5 6 7 8 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.170 1.1 1.369 1.21 1.602 1.331 1.874 1.4641 2.192) 1.61051 2.565 1.77156 3.001 1.94872 3.511 2.14359 4.108 2.35795 4.807 2.59374 5.624 2.85312 2.0635 2.1948 2.3344 2.483 2.641 2.8091 2.9878 3.178 3.3802 3.5953 3.8241 31.491 9 10 11 1.94 5.62399 1.04 0.06 2.85312 66.284 Stock Price $97.78 Problem 7: Two-Stage Dividend Growth Model Navel County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 11 years before leveling off at 4 percent into perpetuity. The required return on the company's stock is 10 percent. The dividend per share just paid was $1.94. What is the stock's current price? Create your Original Solution Below - Be sure to show all calculations and clearly indicate answers. = Current Dividend (DO) Number of years Growth Rate (1) Growth Rate after 11 years (92) Required Return $1.94 11 17% 4% 10% Years 1 2 3 4 5 6 7 8 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.94 1.170 1.1 1.369 1.21 1.602 1.331 1.874 1.4641 2.192) 1.61051 2.565 1.77156 3.001 1.94872 3.511 2.14359 4.108 2.35795 4.807 2.59374 5.624 2.85312 2.0635 2.1948 2.3344 2.483 2.641 2.8091 2.9878 3.178 3.3802 3.5953 3.8241 31.491 9 10 11 1.94 5.62399 1.04 0.06 2.85312 66.284 Stock Price $97.78
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