Excel 2013 Project Grader Berk.DeMarzo Harford. Problem 7-10. v8 Project Description: (VB) In this problem, you will calculate: a) the price that you would pay for a share of a company's stock today if you plan to hold the stock for two years; b) the price for which you would be able to sell the share of the company's stock in one year; and a) the price that you would pay for a share of the company's stock today if you plan to hold the stock for one year. Steps to Perform: Points Possible Instructions Step Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Start Excel. Download and open the workbook named: Berk DeMarzo Harford Problem 7-10 Start. In cell D18, by using cell references, calculate the price that you would be willing to pay for the stock if you plan to hold it for two years. In cell D24, by using cell references, calculate the price at which you would be able to sell the 2 stock in one year In cel D28, by using cell references, write an expression to calculate the price that you would 3 be willing to pay for the stock if you plan to hold it for one year Note: Use cell D22 as the discount period. In cell 029, type whether the price you would pay is or is not affected by the holding period. 5 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed Total Points Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a dividend of $3 per share next year. You expect Acap's stock price to be $$2 in two years. Assume that Acap's equity cost of capital is 10%. Complete the steps below using cell references to given data or previous calculations. In some cases a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cel reference or a mixed cell reference may be preferred. Ifa specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data inlo a cell or function, Inste ad, make a reference to the cell in which the data is found. Make your compulations only in the blue cells highlighted below In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, urually the Given Data section. a. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? Given your answer to (b), what price would you be wiling to pay for a share of Acap stock today, if you planned to hold the stock for one year? How does this price compare to your answer in (a)? Dividend in 1 year Dividend in 2 years Share price in 2 years Equity cost of capital What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? Holding perlod (years)1 Price per share b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able t sell a share of Acap stock in one year Midlig perbad ovars) Price per share Given your answer to (b), what price would you be willing to pay for a share of Acap slock today, if you planned so hold the stock for one year? How does this price compare to your answer in (a)? Price per share The price you would pay affected by the amount of time you hold the ck. Requirements 1 In cell D18, by using cell references, calculate the price that you would be willing to pay for the stock If you plan to hold it for two years (1 pt.) one year (1 pt.) In cell D28, by using cell references, calculate the price that you would be willing to pay for the stock 2 In cell D24, by using cell references, calculate the price at which you would be able to sell the stock in if you plan to hold it for one year (1 pt.) Note: Use ce. D22 as the discount period. In cell D29, type whether the price you would pay is or is not affected by the holding period (1 pt.). Excel 2013 Project Grader Berk.DeMarzo Harford. Problem 7-10. v8 Project Description: (VB) In this problem, you will calculate: a) the price that you would pay for a share of a company's stock today if you plan to hold the stock for two years; b) the price for which you would be able to sell the share of the company's stock in one year; and a) the price that you would pay for a share of the company's stock today if you plan to hold the stock for one year. Steps to Perform: Points Possible Instructions Step Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. Start Excel. Download and open the workbook named: Berk DeMarzo Harford Problem 7-10 Start. In cell D18, by using cell references, calculate the price that you would be willing to pay for the stock if you plan to hold it for two years. In cell D24, by using cell references, calculate the price at which you would be able to sell the 2 stock in one year In cel D28, by using cell references, write an expression to calculate the price that you would 3 be willing to pay for the stock if you plan to hold it for one year Note: Use cell D22 as the discount period. In cell 029, type whether the price you would pay is or is not affected by the holding period. 5 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed Total Points Suppose Acap Corporation will pay a dividend of $2.80 per share at the end of this year and a dividend of $3 per share next year. You expect Acap's stock price to be $$2 in two years. Assume that Acap's equity cost of capital is 10%. Complete the steps below using cell references to given data or previous calculations. In some cases a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cel reference or a mixed cell reference may be preferred. Ifa specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data inlo a cell or function, Inste ad, make a reference to the cell in which the data is found. Make your compulations only in the blue cells highlighted below In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, urually the Given Data section. a. What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able to sell a share of Acap stock in one year? Given your answer to (b), what price would you be wiling to pay for a share of Acap stock today, if you planned to hold the stock for one year? How does this price compare to your answer in (a)? Dividend in 1 year Dividend in 2 years Share price in 2 years Equity cost of capital What price would you be willing to pay for a share of Acap stock today, if you planned to hold the stock for two years? Holding perlod (years)1 Price per share b. Suppose instead you plan to hold the stock for one year. For what price would you expect to be able t sell a share of Acap stock in one year Midlig perbad ovars) Price per share Given your answer to (b), what price would you be willing to pay for a share of Acap slock today, if you planned so hold the stock for one year? How does this price compare to your answer in (a)? Price per share The price you would pay affected by the amount of time you hold the ck. Requirements 1 In cell D18, by using cell references, calculate the price that you would be willing to pay for the stock If you plan to hold it for two years (1 pt.) one year (1 pt.) In cell D28, by using cell references, calculate the price that you would be willing to pay for the stock 2 In cell D24, by using cell references, calculate the price at which you would be able to sell the stock in if you plan to hold it for one year (1 pt.) Note: Use ce. D22 as the discount period. In cell D29, type whether the price you would pay is or is not affected by the holding period (1 pt.)