Question: I know the answer, but I don't understand which formulas to use in excel to show my work. Can someone help me fill out this


I know the answer, but I don't understand which formulas to use in excel to show my work. Can someone help me fill out this Excel sheet?
Video Excel Online Structured Activity: Nonconstant growth Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.00 coming 3 years from today. The dividend should grow rapidly - at a rate of 44% per year - during Years 4 and 5; but after Year 5, growth should be a constant 5% per year. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. HIIHT Open spreadsheet If the required return on Computech is 17%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations. $ Check My Work Reset Problem C14 fx B B D E F G H A 1 Nonconstant growth 2 3 Year 3 Dividend. D: 4 Supernormal growth rate. gs 5 Normal growth rate. 6 Required retum.rs 7 8 8 9 Dividends $1.00 44.00% 5.00% 17.00% 44,00% 4 44.00% 5 5.00% 6 0 1 0 2 0 3 $1.00 10 PS 0 0 0 1 0 2 0 3 $1.0000 44.00% 4 INIA 11 Cash flows to common stockholders 12 13 PV of cash flows to common stockholders 14 Stock Price, P. 15 16 Alternatively, using Excel NPV function 17 Stock Price, Po 18 19 20 Formulas 21 22 23 Dividends 24 PS 25 Cash flows to common stockholders 26 27 PV of cash flows to common stockholders 28 Stock Price, P. 29 30 Alternatively, using Excel NPV function: 31 Stock Price, Po 32 33 34 35 36 44.00% 5 N/A #N/A LANA 5.00% 6 #N/A 0 0 ANA #N/A #N/A #N/A N/A WNIA N/A #N/A #N/A
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
