Use excel only to solve the highlighted part and please show the formulas.

a o 8 DIVO A B C D C E F G H I J K L M N O P Q 1 Case 2: Stock valuation with two-stage growth tied to plowback policy 2 Existing 3 ROE 0.25 Return on equity 4 Plowback ratio 0.5 The ratio of retained earnings over net income 5 Payout ratio 0.5 The ratio of dividends paid over net income 0.125 Sustainable growth rate = ROE * plowback ratio 7 EPS. $4 $2 9 9 10 r 0.2 11 Po $ 30.00 12 13 Firm is considering the share price impact of a reduction in plowback ratio to 0.30 starting in year 6 onward. Please a template calculate the price impact of such as policy change. 14 ROE 0.2 15 Plowbacknew t=6 and onward 0.3 Plowbackt-1 to 5 remains @ 0.5 16 Payoutnew t=6 and onward 0.7 Payout=1 to 5 remains @ 0.5 17 18 Calculate the price impact of reducing plowback ratio to 0.3 starting in year 6 onward. 19 20 g new 0.06 21 1.125 1.125 1.125 1.125 1.06 22 1.125 1.125 1.125 1.125 1.06 23 24 1 2 3 4 5 6 7 25 Forecasting EPS 4.5 5.06 5.7 6.41 7.21 7.64 8.1 26 Forecasting DIV 2.25 2.53 2.85 3.2 3.6 5.35 5.67 27 38.2 28 2.25 2.53 2.85 3.2 41.81 29 30 PO 23.63 31 32