Question: please answer light blue boxes in excel formula. THANK YOU A B C D E F G H 2 Common stock value: Constant growth. Use

 please answer light blue boxes in excel formula. THANK YOU A

please answer light blue boxes in excel formula. THANK YOU

B C D E F G H 2 Common stock value: Constant

A B C D E F G H 2 Common stock value: Constant growth. Use the constant-growth dividend model (Gordon growth model) to find the value o 3 each firm shown in the following table. Dividend expected next Dividend 5 Firm year growth rate Required return A $ 1.20 8% 13% B 4.00 5 15 C 0.65 10 14 D 6.00 8 9 10 E 2.25 8 20 Solution Stock A Dividend expected next year $ 1.20 Dividend growth rate 8% Required return 13% 18 Stock value 19 20 Stock B Dividend expected next year $ 4.00 Dividend growth rate 5% Required return 15% Stock value Stock C Dividend expected next year $ 0.65 Dividend growth rate 10% Required return 14% Stock value Stock D Dividend expected next year $ 5.00 Dividend growth rate 8% Required return 9% 36 Stock value 38 Stock E 39 Dividend expected next year $ 2.25 40 Dividend growth rate 8% Required return 20% Stock value

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