Help wanted with Finance worksheet

rx_1301c_mt_217_unit_6_distinguished_scholar_guide_2.xlsx

Sheet1

		Unit 6 Distinguished Scholar Template, Sample Data
		Risk Free rate,	Rf = 4.5%
		Market Return rate,	Rm = 13%
		Beta or risk,	β = .80
		Dividend today,	$ 1.60
		Dividend 6 years ago	$ 1.25
		Begin by calculating required return or RE (also referred to as r)
Steps	Numbers
1	a %	1) Let's find (r) = Rf + ( β * [Rm - Rf] )		[Comes from the CAPM model]
			.045 + .80 (.13-.045)	Order of mathametical ops
			.045 +[ (.80) * (.085)]
			.045 + [.068] = .113				0.113
2	a %	2) Next, find g or growth, a function of fx RATE [Nper, PV, and FV ]					4.20%
3	a $	3) D1 (1.60 x g) is based on today's dividend times g (growth rate)					$ 1.67
4	a $	4) Stock price model is
				$ 1.67	$ 1.67	$ 23.52	PRICE
				(0.113-.042)	0.071