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

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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."

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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

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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 =
liquidating dividend annual dividend

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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
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 =

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liquidating dividend annual dividend Sum \$12.41 D T D t
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

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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 =
\$4.01 5 D t

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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
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 =

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\$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
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

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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
k = 11% \$281.02 P 0 =

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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
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

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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
Chapter 6 Question 9 Perpetual Dividend Growth Input Area:

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

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