implprem - 4.16(Go under Tools and choose Solver See below...

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 = 1418.3 Enter current dividend yield = 3.75% Enter expected growth rate in earnings fo 6.00% Enter current long term bond rate = 4.70% Enter risk premium = 4.91% Enter expected growth rate in the long te 4.70% Intrinsic Value Estimate 1 2 3 4 5 Expected Dividends = $56.38 $59.76 $63.35 $67.15 $71.18 Expected Terminal Value = $1,517.73 Present Value = $51.43 $49.74 $48.10 $46.52 $1,004.26 Intrinsic Value of Index $1,200.06 Implied Risk Premium Implied Risk Premium in current level of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 4.16% (Go under Tools and choose Solver: See below) 1 2 3 4 5 Expected Dividends = $56.38 $59.76 $63.35 $67.15 $71.18 $75.80 Expected Terminal Value = $1,792.42 Present Value = $51.79 $50.43 $49.11 $47.82 $1,219.15 Intrinsic Value of Index $1,418.30 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 01/29/2012 for the course FIN 6000 taught by Professor Banko during the Fall '11 term at University of Florida.

Ask a homework question - tutors are online