Hello again, Here is my first assignment. I have included the deliverables plus my completed spreadsheet. Can you please take a look at my spreadsheet and see if my answers are correct. If not can you please let me know where I went wrong and correct my spreadsheet..

Activity 1: Dividends: $1.24 Beta 1.32% Risk Free .03% from Bloomberg Market Proxy 8% Next year the president and the Board expect to see a growth at 7%. The following year has a projected growth accelerated to reach 10% and continue at 10% for another 3 years. After that it will fall back to the current 7% growth. To summarize: Year 1= 7%; Years 2, 3, 4 = 10%; then going forward = 7%. 1 2 3 Please use the non-constant growth model to calculate the expected price of the stock now. Determine the one additional component X you need to use to figure this out in the non-constant growth model. Here is information that might help you determine X: our beta is about 1.32. If you decide to use the CAPM, please use the 3-month Treasury bill rate from http://www.bloomberg.com/markets/rates/index.html. With this information in hand, you can proceed as follows: First use CAPM to determine your factor X. Then start applying the non-constant and constant growth models to determine your cash flows per period. Do not forget to calculate the horizon or terminal value of the company's stock. Discount the obtained cash values. Sum the discounted values up for the price of stock valuation. Deliverables The end result should be the calculated price of the company's stock. Support your answer by showing your calculations so I will know that you understand how to do this. Submit your analysis to my drop box by the date to be specified. CAPM Re=Rf+B(Rm-Rf) Re Rf 0.096 r(f) r(m) Beta (e) r(e) B 0.03 Rm 1.32 0.03 0.08 1.32 0.096 Dividends Po=D/(1+Rs) D1 D2 D3 D4 D5 1.24(1.07)= 1.33(1.10)= 1.46(1.10)= 1.61(1.10)= 1.77(1.07)= Terminal or Horizon Value D(5) 1.89 R(e) 0.096 g(n) 0.07 Po 72.6923077 pv $50.84 Discount $58.90 1.33 1.46 1.61 1.77 1.89 8.06 Rf 0.08 0.03