Cost of Capital 4.00 Use however many columns you need. Make sure your computed price works not matter what I change the

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Cost Of Capital 4 00 Use However Many Columns You Need Make Sure Your Computed Price Works Not Matter What I Change The 1 (112.66 KiB) Viewed 68 times

Cost of Capital 4.00 Use however many columns you need. Make sure your computed price works not matter what I change the n to. t n = 1 2 Ро 1. Cost of Equity a. Compute their cost of equity capital using the 2-stage Dividend Discount Model. Use their current price, most recent annual dividend and 5 projected 5 (n) year earnings growth rate. Use 3% as the long term Do = $1.500 growth rate. (Hint, you will need to guess at kpd and then use Goal Po = $45.00 Seek to find the correct KDDM- g. 15.00% 3.00% c. Build your table with IF statements so if I change the number of periods k DDM = 10.000% for the change form short- to long-term in the table recomputes correctly. Your value for n should be able to take on any value from 2 to 16. 3 4 5 6 2. Data Table Build a Data Tables (You MUST use the Data Table Feature under Data/What If Analysis). Compute the sensitivity of the short-term growh rate on the computed Price. 7 7 8 9 10 11 12 13 14 15 16 3. Graph Data table. Graph each of your Data Tables. On one or two, practice formatting to make the graph look really good. Try inserting a picture or something. Computed price Goal Seek: Enter Exactly what you would in the Goal Seek tool Set Cell To Value By Changing