Question: How to solve using Excel!! Create a user-defined function to calculate the value of a common stock using the earnings model that was introduced in

How to solve using Excel!! Create a user-defined function to calculate the value of a common stock using the earnings model that was introduced in Chapter 9 on page 284.

  1. What arguments will you need to accept in order to implement equation (9-13) exactly as it is displayed? 9-13:

b. Now change your function so that it requires the retention ratio, instead of the expected retained earnings.

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