The formula is D0*(1+g)/(r-g)
I am showing here for one case
For example part a)
1) for growth rate of -2%
Enter the below formula in Excel in any cell
=1.25*(1+(-2%))/(8%-(-2%))
You will get a value of 12.25
Similarly you can do for other parts
PLEASE SHOW HOW TO DO IN EXCEL 9-12 VALUATION OF A CONSTANT GROWTH STOCK Investors require...
Constant Growth Stock Valuation Investors require a 15% rate of return on Brooks Sisters' stock . What will be Brooks Sisters' stock value if the most recent dividend was $2 and if investors expect dividends to grow at a constant compound annual rate of (1) −5%, (2) 0%, (3) 5%, and (4) 10%? Using data from part a, what is the Gordon (constant growth) model value for Brooks Sisters' stock if the required rate of return is 15% and the expected...
Problem 9-12 Valuation of a constant growth stock Investors require a 15 % rate of return on Levine Company's stock (1.e.., rs 15 % ) . a. What is its value if the previous dividend was Do- $1.50 and investors 12% 7 Round your answers to two decimal places. expect dividends to grow at a constant annual rate of (1) -3%, (2) 0 % , ( 3) 26 , or ( 4) (1) O (2) $ (3) (4) $ O...
Problem 9-12 Valuation of a constant growth stock Investors require a 18% rate of return on Levine Company's stock (that is, rs = 18%). a. What is its value if the previous dividend was Do = $1.00 and investors expect dividends to grow at a constant annual rate of (1) -4%, (2) 0%, (3) 4%, or (4) 12%? Round answers to the nearest hundredth. (1) $ (2) $ (3) $ (4) $ b. Using data from part a, what would...
Valuation of a constant growth stock Investors require a 18% rate of return on Levine Company's stock (i.e., rs = 18%). What is its value if the previous dividend was D0 = $2.50 and investors expect dividends to grow at a constant annual rate of (1) -2%, (2) 0%, (3) 3%, or (4) 14%? Round your answers to two decimal places. (1) $ (2) $ (3) $ (4) $ Using data from part a, what would the Gordon (constant growth)...
I have part A but need help with B and C 12. Investors require a 15% rate of return on Levine Company's stock (that is, r, = 15%). a. What is the value if the previous dividend was Do= $2.00 and investors expect dividends to grow at a constant annual rate of (1) -5%, (2) 0%, (3) 5%, or (4) 10%? b. Using data from Part a, what would the Gordon (constant growth) model value be if the required rate...
Investors require a 7% rate of return on Mather Company's stock (i.e., rs = 7%). What is its value if the previous dividend was D0 = $2.75 and investors expect dividends to grow at a constant annual rate of (1) -5%, (2) 0%, (3) 4%, or (4) 5%? Do not round intermediate calculations. Round your answers to the nearest cent. (1) $ (2) $ (3) $ (4) $ Using data from part a, what would the Gordon (constant growth) model...
Investors require an 8% rate of return on Mather Company's stock (i.e., rs = 8%). What is its value if the previous dividend was D0 = $3.00 and investors expect dividends to grow at a constant annual rate of (1) -4%, (2) 0%, (3) 2%, or (4) 6%? Do not round intermediate calculations. Round your answers to the nearest cent. (1) $ (2) $ (3) $ (4) $ Using data from part a, what would the Gordon (constant growth) model...
Investors require a 7% rate of return on Mather Company's stock (i.e., rs = 7%). a. What is its value if the previous dividend was Do = $2.00 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 3%, or (4) 5%? Do not round intermediate calculations. Round your answers to the nearest cent. (1) $ (2) $ (4) $ b. Using data from part a, what would the Gordon (constant growth) model...
WORK tool Problem Walk-Through Investors require an 8% rate of return on Mather Company's stock (i.e., rs = 8%). a. What is its value if the previous dividend was Do - $1.50 and investors expect dividends to grow at a constant annual rate of (1) -6%, (2) 0%, (3) 3%, or (4) 7%? Do not round intermediate calculations. Round your answers to the nearest cent. (1) $ (2) $ (3) $ 10. b. Using data from part a, what would...
Investors require an 3% rate of return on Mather Company's stock (lets - 8%). 3. What is its value if the previous dividend was Do = $3.00 and investors expect dividends to grow at a constant annual rate of (1) -3%, (2) 0%, (3) 4%, or (4) 69? Do not round Intermediate calculations. Round your answers to the nearest cent. (2) b. Using data from part a, what would the Gordon (constant growth) model value be if the required rate...