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.
Transcribed Image Text: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
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