Question: If Done in Excel Please show Formulas for Each Cell Spartan Spirit Corporation's share is trading in the open market. The company is expected to

 If Done in Excel Please show Formulas for Each Cell Spartan

If Done in Excel Please show Formulas for Each Cell

Spartan Spirit Corporation's share is trading in the open market. The company is expected to pay $5 dividend next year (year 1), but the dividend is expected to grow at 6% for another 4 years (till the end of year 5), but then decrease by 3% for another 5 years because of foreseeable financial difficulties. But after that, the dividend is expected to grow again at 2% forever, which is roughly the expected GDP growth rate at US. The required return of this stock is 10%. Price this stock. Clearly show your calculations and formulas. (Hint: use growing annuity formula and growing perpetuity for- mula, be ware of the time vantage points!)

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