Brazilimplprem

Brazilimplprem - 6.56% (Go under Tools and choose Solver:...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Sheet1 Page 1 Implied Risk Premium Calculator Enter level of the index = 17647 Enter current dividend yield = 4.15% Enter expected growth rate in earnings f 15.00% Enter current long term bond rate = 5.00% Enter risk premium = 5.50% Enter expected growth rate in the long te 5.00% Intrinsic Value Estimate 1 2 3 4 5 Expected Dividends = $842.20 $968.53 $1,113.81 $1,280.89 $1,473.02 Expected Terminal Value = $28,121.26 Present Value = $762.17 $793.21 $825.52 $859.13 $17,963.72 Intrinsic Value of Index $21,203.76 Implied Risk Premium Implied Risk Premium in current level o
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 6.56% (Go under Tools and choose Solver: See below) 1 2 3 4 5 Expected Dividends = $842.20 $968.53 $1,113.81 $1,280.89 $1,473.02 $1,568.76 Expected Terminal Value = $23,561.84 Present Value = $754.90 $778.15 $802.12 $826.82 $14,485.01 Intrinsic Value of Index $17,647.00 This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it). Enter current level of index where you see 759.64....
View Full Document

This note was uploaded on 12/01/2011 for the course FINANCE 350 taught by Professor Aswath during the Summer '10 term at NYU.

Ask a homework question - tutors are online