Question: please show steps & excel functions used to solve a & b. i want to know which formulas in EXCEL to use! please help. Formulas
Formulas Data >> Tell me Share A. % Clipboard Font Conditional Formatting Format as Table Cell Styles Alignment Number Cells Editing AL RATE vfe A D E 1 3 4. NM N O Year 2001 2002 2003 2004 2005 Dividend per share 0.21 0.25 0.27 0.32 0.37 Number of shares 4, 125,000 4,000,000 3,800,000 3,800,000 3,750,000 Share price, end of year 21.00 20.50 22.00 21.80 22.30 5 6 7 8 Part A. Estimate the constant annual compounding growth rate based on the dividends 2001 through 2005. 9 Anticipated dividend compound growth rate 11.99% 10 11 Part B. Use the Gordon dividend model to estimate the cost of equity 12 Gordon model cost of equity, le 13 14 15 16 17 18 19 20 21 22 23 24 NNNNBOUW
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