E '3 ' 0' 3' = Calculating stock priceeExcel ? E X a Restore r PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In\" Move . _ = .H. Size . . . . op . A . Alignment Number Conditional Formatas Cell Cells Editing - Mlnlmlze v ' Formatting ' Table " Styles " V V a Maximize 1t IT. Styles A x lCIose Alt+F4 J .5 v Metallica Bearings. Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the rm needs to plow back its earnings to fuel growth. The company will pay a $14 per share dividend 10 years from today and will increase the dividend by 3.9 percent per year thereafter. If the required return on this stock is 12.5 percent, what is the current share price? Complete the following analysis. Do not hard code values In your calculations. Stock price in 9 years Stock price today XI H 6 . d . 2. Calculating dividend yield and capital gains yield - Excel ? X FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Arial - 12 " A A % Paste BIU - Alignment Number Conditional Format as Cell Cells Editing Formatting * Table * Styles Clipboard Font Styles D15 v X A B C D E F G H K The next dividend payment by Halestorm, Inc., will be $2.04 per share. The dividends are 3 anticipated to maintain a growth rate of 4.5 percent forever. The stock currently sells for $37 per share. What is the dividend yield? What is the expected capital gains yield? Next year's dividend $ 2.04 Dividend growth rate 4.5% Stock price $ 37.00 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 Dividend yield 5.51% 14 15 Capital gains yield 16 17 18 19 Sheet1 +