Question: Please answer in MS Excel with formulas Answer these questions in MS Excel, make your own template 1. Common Stock Valuation (point 15%) LO-3: Calculate
Answer these questions in MS Excel, make your own template 1. Common Stock Valuation (point 15%) LO-3: Calculate Time Value of Money, Common Stock Valuation, Bond Valuation, The Cost of Capital, Capital Budgeting, Risk and Capital Budgeting The Bitcoin Company has a dividend payout ratio of 42%. Next year it will earn $3 per share and have a return on equity of 15%. The shareholders' required return is 12%. a. Calculate the company's growth rate of EPS. b. Using the earnings model, what is the value of the stock? C. Construct a table that shows how the value of the stock will change if the ROE ranges between 10% and 20%, in 1% increments. Remember that changing the ROE will also affect the growth rate. Now, using that data, create a scatter chart to show the relationship between the value of the stock and the ROE. Is the relationship linear? d. Using the constant-growth dividend discount model, what is the value of the stock
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