A 1 Inputs for Toyotal 2 beta 3 4 rf mkt_prem 5 k_equity 6 7 8 25 term_gwth 9 10 11 12 Valueline 13 forecasts of 14 annual dividends 15 16 17 Transitional period 18 with slowing dividend 19 growth 20 21 22 23 24 B 0.8 0.08 0.02 0.0840 0.050 C El X1 Beginning of constant growth period D Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 E Dividend 4.45 4.82 5.18 5.55 5.97 6.41 6.87 7.34 7.82 8.32 8.82 9.33 9.85 10.37 10.89 11.43 F Div growth Term value 0.0764 0.0738 0.0711 0.0685 0.0658 0.0632 0.0606 0.0579 0.0553 0.0526 0.0500 0.0500 E17*(1+F17)/(B5-F17) G 353.03 H Investor CF 4.45 4.82 5.18 5.55 5.97 6.41 6.87 7.34 7.82 8.32 8.82 9.33 9.85 10.37 10.89 364.46 I 157.00 = PV of CF NPV(B5, H2:H17) J K
A 1 Inputs for Toyotal 2 beta 3 4 rf mkt_prem 5 k_equity 6 7 8 25 term_gwth 9 10 11 12 Valueline 13 forecasts of 14 annual dividends 15 16 17 Transitional period 18 with slowing dividend 19 growth 20 21 22 23 24 B 0.8 0.08 0.02 0.0840 0.050 C El X1 Beginning of constant growth period D Year 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 E Dividend 4.45 4.82 5.18 5.55 5.97 6.41 6.87 7.34 7.82 8.32 8.82 9.33 9.85 10.37 10.89 11.43 F Div growth Term value 0.0764 0.0738 0.0711 0.0685 0.0658 0.0632 0.0606 0.0579 0.0553 0.0526 0.0500 0.0500 E17*(1+F17)/(B5-F17) G 353.03 H Investor CF 4.45 4.82 5.18 5.55 5.97 6.41 6.87 7.34 7.82 8.32 8.82 9.33 9.85 10.37 10.89 364.46 I 157.00 = PV of CF NPV(B5, H2:H17) J K
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Calculate the intrinsic value of Toyota in each of the following scenarios by using the three-stage growth model of Spreadsheet . Treat each scenario independently.
Required:
-
The terminal growth rate will be 5.7%.
Note: Round your answer to 2 decimal places.
-
Toyota’s actual beta is 0.85.
Note: Round your answer to 2 decimal places.
-
The market risk premium is 8.7%.
Note: Round your answer to 2 decimal places.
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