Colombiaimplprem10

Colombiaimplprem10 - 6.96(Go under Tools and choose Solver...

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Sheet1 Page 1 Implied Risk Premium Calculator Enter level of the index = 11602 Enter current dividend yield = 5.50% Enter expected growth rate in earnings fo 7.50% Enter current long term bond rate = 2.50% Enter risk premium = 6.63% Enter expected growth rate in the long te 2.50% Intrinsic Value Estimate 1 2 3 4 5 Expected Dividends = $685.97 $737.42 $792.72 $852.18 $916.09 Expected Terminal Value = $14,162.77 Present Value = $628.58 $619.19 $609.94 $600.83 $9,741.99 Intrinsic Value of Index $12,200.53 Implied Risk Premium Implied Risk Premium in current level of
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Unformatted text preview: 6.96% (Go under Tools and choose Solver: See below) 1 2 3 4 5 Expected Dividends = $685.97 $737.42 $792.72 $852.18 $916.09 $975.64 Expected Terminal Value = $13,483.44 Present Value = $626.66 $615.42 $604.38 $593.53 $9,162.02 Intrinsic Value of Index $11,602.00 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....
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This note was uploaded on 12/01/2011 for the course FINANCE 350 taught by Professor Aswath during the Summer '10 term at NYU.

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