Question

1 A: D0 = $6.00; D₁ = 6.25, D₂ = 6.35, D₃ = 6.5, D₄ = 6.75, D₅ = 7, D₆ = 7.25, D₇ = 7.50, D₈ = 7.70, and constant growth 4% thereafter. k_s = 16% Find P₀.

1 B: D0 = $3.00; g₁ = 5%, g₂ = -2%, g₃ = 5%, g₄ = 6%, g₅ = 6%, g₆ = 4%, and constant growth -4% thereafter. k_s =14%. Find P_{1 .}

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -