Question: Please use Excel 4. The following table contains information about four different companies, including the estimated next years EPS, payout ratio, shareholders required rate of

Please use Excel

4. The following table contains information about four different companies, including the estimated next years EPS, payout ratio, shareholders required rate of return, and return on equity (ROE):

Please use Excel 4. The following table contains information about four different

1) Calculate each companys future earnings growth rate. Using the earnings model, what is the value of the stock? Calculate the value without growth and PVGO separately.

2) Calculate the value of the stock using the constant-growth dividend discount model.

EPS Payout Ratio Required rate of Return ROE Firm A Firm B Firm C Firm D $0.80 $1.15 $1.47 $1.85 30% 50% 60% 40% 12% 11% 12% 14% 16.00% 15.00% 14.00% 16.00%

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