ch14_p2sol - retained earnings. Solution: Public Function...

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

View Full Document Right Arrow Icon
597 CHAPTER #14: WRITING USER-DEFINED FUNCTIONS WITH VBA Solution 2. Create a user-defined function to calculate the value of a common stock using the earnings model that was introduced in Chapter 8 on page 232. a. What arguments will you need to accept in order to implement equation (8-10) exactly as it is displayed? Solution: Public Function EMValue(EPS As Single , RetEarnings As Single , ROE As Single , ReqReturn As Single , GrowthRate As Single ) As Single 'Calculates the value of a common stock using the earnings model 'Solution for problem 2a, chapter 14 EMValue = EPS / ReqReturn + RetEarnings * (ROE / ReqReturn - 1) / (ReqReturn - GrowthRate) End Function b. Now change your function so that it requires the retention ratio, instead of the expected
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: retained earnings. Solution: Public Function EMValue2(EPS As Single , RetRatio As Single , ROE As Single , ReqReturn As Single , GrowthRate As Single ) As Single 'Calculates the value of a common stock using the earnings model 'Solution for problem 2b, chapter 14 EMValue2 = EPS / ReqReturn + EPS * RetRatio * (ROE / ReqReturn - 1) / (ReqReturn - GrowthRate) End Function c. Use your function to solve parts a and b of problem 1 on page 244. Worksheet: Error! Reference source not found. Error! Reference source not found.RITING USER-DEFINED FUNCT 598 Text Problem Solutions Formulas:...
View Full Document

This note was uploaded on 02/14/2011 for the course FINANCE 615 taught by Professor Green during the Fall '09 term at UMBC.

Page1 / 2

ch14_p2sol - retained earnings. Solution: Public Function...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online