excel problem

ch08_6_1.xlsx

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Chapter 8

			Chapter 8
			Problems 4, 6, 7, 32
			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 the Office button
			then "Excel Options," "Add-Ins" and select
			"Go." Check "Analyis ToolPak" and
			"Solver Add-In," then click "OK."

#4

		Chapter 8
		Question 4
		Input area:
		Dividend paid
		Dividend growth rate
		Required return
		Output area:
		Price	ERROR:#DIV/0!

#6

		Chapter 8
		Question 6
		Input area:
		Stock price	$ 63.00
		Required return	10.5%
		Output area:
		Next year's dividend	$ 3.31
		Current dividend	$ 3.14

#1

1. Stock Values [LO1] The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson–Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years?

#7

		Chapter 8
		Question 7
		Input area:
		Current dividend
		Years until dividend ceases
		Required return
		Output area:
		Share price	$ - 0

#32

		Chapter 8
		Question 32
		Input area:
		Required return
		Most recent dividend
		Stock W dividend growth rate
		Stock X dividend growth rate
		Stock Y dividend growth rate
		Stock Z:
		Initial growth rate
		Initial # of years
		Final growth rate
		Output area:
		Dividend yields:
		Stock W price	ERROR:#DIV/0!
		Dividend yield	ERROR:#DIV/0!
		Capital gains yield	ERROR:#DIV/0!
		Stock X price	ERROR:#DIV/0!
		Dividend yield	ERROR:#DIV/0!
		Capital gains yield	ERROR:#DIV/0!
		Stock Y price	ERROR:#DIV/0!
		Dividend yield	ERROR:#DIV/0!
		Capital gains yield	ERROR:#DIV/0!
		Stock Z price at final rate	ERROR:#DIV/0!
		Stock Z current price	ERROR:#DIV/0!
		Dividend yield	ERROR:#DIV/0!
		Capital gains yield	ERROR:#DIV/0!
		In all cases, the required return is 0%, but this return is distributed
		differently between current income and capital gains. High growth
		stocks have an appreciable capital gains component but a
		relatively small current income yield; conversely, mature, negative-
		growth stocks provide a high current income but also price
		depreciation over time.