Show all your calculations using both Python and Excel.

(a) Janet is a financial analyst who specialises in US stocks. She has been following SIMCO, a mature company in the parcel delivery business. She decides to value the company using the Gordon growth model. She calculates the required return on equity using the following data:

Risk-free rate = 2% Market return = 8% Beta of SIMCO = 0.5 Beta of Industry = 0.8

The company has just paid dividends of $0.80 per share. Janet estimates that the company will grow at a rate of 3% into the foreseeable future. Calculate the value per share. Present your calculations in both Python and Excel.

(b) FABULOUS PHABLET is another company that Janet tracks. It is a high growth company involved in the manufacture of mobile gadgets. Janet makes the following estimates:

Beta of FABULOUS PHABLET = 1.6Beta of industry = 1.3

She further estimates that the companys dividend will grow at a rate of 20% this year, 15% next year and 12% in the third year. After three years, she expects dividends to grow at a constant rate of 3.5% a year. The latest dividend paid was $0.50 per share.

Using the dividend discount model, what is the value per share? Present your calculations in both Python and Excel. (20 marks)