# implprem - \$326.49 Implied Risk Premium in current level of...

This preview shows pages 1–2. Sign up to view the full content.

Sheet1 Page 1 Implied Risk Premium Calculator Enter level of the index = 970.43 Enter current dividend yield = 1.60% (if you want, you can add stock buybacks to this num Enter expected growth rate in earnings for next 5 ye 8.00% Enter current long term bond rate = 5.92% Enter risk premium = 5.50% Enter expected growth rate in the long term = 5.92% (As a default, it is set equal to long term bond rate) 1 2 3 4 5 Expected Dividends = \$16.76 \$18.10 \$19.55 \$21.11 \$22.80 Expected Terminal Value = \$439.16 Present Value = \$15.04 \$14.58 \$14.13 \$13.70 \$269.03 Intrinsic Value of Index =

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: \$326.49 Implied Risk Premium in current level of Index = 1.86% (Go under Tools and choose Solver: See below) 1 2 3 4 5 Expected Dividends = \$16.76 \$18.10 \$19.55 \$21.11 \$22.80 Expected Terminal Value = \$1,297.92 Present Value = \$15.55 \$15.58 \$15.61 \$15.65 \$908.03 Intrinsic Value of Index = \$970.43 This is a picture of the solver option, with the inputs that I used (Do not tr Enter current level of index where you see 759.64. Sheet1 Page 2 mber) ry to enter numbers in it)....
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern