Question: please show answer in excel You are considering the purchase of a new stock. The stock is forecasted to pay a dividend next year (D1)

please show answer in excel please show answer in excel You are considering the purchase of a

You are considering the purchase of a new stock. The stock is forecasted to pay a dividend next year (D1) of $3.88. In addition, you forecast that the firm will have a stable growth rate of 1.9% for the foreseeable future. The current risk-free rate of return is 1.4%. The expected return on the market is 10.7% and the standard deviation for the market is 16%. The stock has a correlation to the market of 0.59. Finally, the stock has a standard deviation of 22%. Given this information, what is the value of the stock? (Hint -- it is a constant growth situation)

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