Chapter06CorradoJordanRex - Chapter 6 Problems 1-38 Input...

Info iconThis preview shows pages 1–22. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 Problems 1-38 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
Background image of page 1

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

View Full DocumentRight Arrow Icon
k"
Background image of page 2
Chapter 6 Question 1 Dividend Valuation Input Area: $4.00 4 $40.00 11% Output Area: $38.76 =PV(D10,D8,-D7,-D9) Annual dividend, D t # of years, T Liquidating dividend, L T Discount rate, k P 0
Background image of page 3

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

View Full DocumentRight Arrow Icon
Dividends $40.00 $4.00 $4.00 $4.00 $4.00 1 2 3 4 k = 11% Discounted values $3.60 $3.25 $2.92 $2.63 $26.35 $38.76 D T D t P 0 =
Background image of page 4
liquidating dividend annual dividend
Background image of page 5

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

View Full DocumentRight Arrow Icon
Chapter 6 Question 2 Dividend Valuation Input Area: $4.00 # of years 4 11% $50.00 Output Area: PV of liquidating dividend $37.59 =D10-PV(D9,D8,-D7) Liquidating dividend $57.06 =D16*(1+D9)^D8 Annual dividend, D t Discount rate, k Current share price, P 0
Background image of page 6
Dividends $4.00 $4.00 $4.00 $4.00 1 2 3 4 k = 11% $50.00 Discounted values $3.60 $3.25 $2.92 $2.63 $37.59 $57.06 D T P 0 = L 0 = L T =
Background image of page 7

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

View Full DocumentRight Arrow Icon
liquidating dividend annual dividend Sum $12.41 D T D t
Background image of page 8
Chapter 6 Question 3 Dividend Discount Model Input Area: $3.00 6% 12% # of years dividends last 5 Output Area: $12.75 =$D$7*(1+$D$8)/($D$9-$D$8) 5 $12.75 10 $22.44 30 $42.84 100 $52.78 Annual dividend, D t Dividend growth rate, g Discount rate, k P 0
Background image of page 9

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

View Full DocumentRight Arrow Icon
Dividends $3.18 $3.37 $3.57 $3.79 1 2 3 4 k = 12% $12.75 )*(1-POWER((1+$D$8)/(1+$D$9),D10)) P 0 =
Background image of page 10
$4.01 5 D t
Background image of page 11

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

View Full DocumentRight Arrow Icon
Chapter 6 Question 4 Dividend Discount Model Input Area: Price per share $30.00 8% 16% # of years 10 Output Area: Dividend payment $4.35 =D7*(D9-D8)/((1-POWER((1+D8 Dividend growth rate, g Discount rate, k
Background image of page 12
Goal seek $3.00 Guess Dividends $3.24 $3.50 1 2 k = 16% $20.68 8)/(1+D9),D10))*(1+D8)) D 0 P 0 =
Background image of page 13

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

View Full DocumentRight Arrow Icon
$3.78 $4.08 $4.41 $4.76 $5.14 $5.55 $6.00 $6.48 3 4 5 6 7 8 9 10 D t
Background image of page 14
Chapter 6 Question 5 Dividend Growth Model Input Area: $3.50 # of years 25 11% 20% Output Area: $281.02 =$D$7*(1+D10)/(D9-D10)*(1-POWER(( 20% $281.02 12% $98.53 6% $50.76 0% $29.48 -5% $20.36 Annual dividend, D t Discount rate, k Dividend growth rate, g P 0
Background image of page 15

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

View Full DocumentRight Arrow Icon
t 1 $4.20 2 $5.04 3 $6.05 4 $7.26 5 $8.71 6 $10.45 7 $12.54 8 $15.05 9 $18.06 10 $21.67 ((1+D10)/(1+D9),D8)) 11 $26.01 12 $31.21 13 $37.45 14 $44.94 15 $53.92 16 $64.71 17 $77.65 18 $93.18 19 $111.82 20 $134.18 21 $161.02 22 $193.22 23 $231.87 24 $278.24 25 $333.89 D t
Background image of page 16
k = 11% $281.02 P 0 =
Background image of page 17

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

View Full DocumentRight Arrow Icon
Chapter 6 Question 6 Perpetual Dividend Growth Input Area: $3.00 5.50% 11.80% Output Area: $50.24 =D7*(1+D8)/(D9-D8) D 0 Dividend growth rate, g Required return, k P 0
Background image of page 18
Chapter 6 Question 7 Perpetual Dividend Growth Input Area: $80.00 $4.10 4.0% Output Area: k 9.13% =D9+D8/D7 Price per share, P 0 Dividend payment, D 1 Dividend growth rate, g
Background image of page 19

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

View Full DocumentRight Arrow Icon
Chapter 6 Question 8 Perpetual Dividend Growth Input Area: $30.00 $1.80 13% Output Area: 6.60% =(D9*D7-D8)/(D7+D8) Price per share, P 0 Dividend payment, D 0 Discount rate, k Dividend growth rate, g
Background image of page 20
Chapter 6 Question 9 Perpetual Dividend Growth Input Area:
Background image of page 21

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

View Full DocumentRight Arrow Icon
Image of page 22
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 64

Chapter06CorradoJordanRex - Chapter 6 Problems 1-38 Input...

This preview shows document pages 1 - 22. Sign up to view the full document.

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