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    Excel EX

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    11A8.01. Hoàng Phú An

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    © All Rights Reserved
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    Excel EX

    Uploaded by

    11A8.01. Hoàng Phú An
    1 views10 pages

    Copyright

    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    1 views10 pages

    Excel EX

    Uploaded by

    11A8.01. Hoàng Phú An

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 10

    STOCK VALUATION - What SHOULD BD the price of the stock?

    C 1 2 3 4 5
    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
    Growth rate 3.40% 3.40% 3.40% 3.40% 3.40%
    g1 g2 g3 g4 g5
    Dividend $ 2.95 $ 3.050 $ 3.154 $ 3.261 $ 3.372 $ 3.487

    Total D $ 2.95 $ 3.05 $ 3.15 $ 3.26 $ 3.37 $ 3.49


    PV $ 2.65 $ 2.38 $ 2.14 $ 2.07 $ 1.89
    Stock Price $ 37.40 $ 43.61
    6 7 R= 11% C
    Year 6 Year 7 15%
    3.40% 3.40% 3% 13% Growth rate
    g6 g7
    $ 3.605 $ 3.728 Dividend
    $ 51.07
    $ 54.67 Total D
    $ 26.26 PV
    Stock Price
    1 2 3 4
    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
    Growth rate 4.00% 4.00% 4.00% 4.00% 4.00%
    g1 g2 g3 g4 g5
    $ 15.00 $ 11.000 $ 9.000 $ 2.950 $ 3.372
    $ 48.70
    $ 15.00 $ 11.00 $ 9.00 $ 51.65
    $ 13.60 $ 9.04 $ 6.71 $ 34.89
    $ 64.24
    R= 10.30%
    15.00%
    13.00%
    Time Value of Money
    10/4/2024 10/4/2025

    $ 100.00 $ 100.00 Amount Same


    Now Future Value Different
    Present value Future value (how much good and services you can buy for the amo

    Case 1 Case 2 Case 3 Case 4


    Future value FV -$2,593.74 $ 5,000.00 $ 7,500.00 $ 7,500.00
    Present value PV $ 1,000.00 -$2,735.17 -$ 5,550.00 -$ 5,550.00
    Interest rate r 10% 9% 4% 7%
    Time (how long?) T 10 7 8 4.4503563
    FV PV RATE NPER
    (Number of periods)
    FV PV 1  r 
    t

    APR vs EAR
    (Annual Percentage Rate vs Effective Annual Rate)

    Bank A Bank B
    APR 7.50% 7.60% Which bank offers a better deal for you?
    Compounding (m) 12 2
    EAR 7.76% 7.74%
    m
    1 yearly
    EAR = (1 + r/m)^m 2 semi yearly
    4 quarterly
    12 monthly
    365 daily

    Annuity

    Future value FV $3,371.79


    Present value PV -$ 1,000.00
    Interest rate r 10%
    Time (how long?) T 7
    Payment PMT -$ 150.00
    s you can buy for the amount of money)

    mber of periods)

    al for you?
    STOCK VALUATION - What SHOULD BD the price of the stock?

    Year 0 Year 1 Year 2 Year 3


    Growth rate 3% 4% 5%
    g1 g2 g3
    Dividend $ 2.00 $ 2.06 $ 2.14 $ 2.25

    Total D $ 2.00 $ 2.06 $ 2.14 $ 2.25


    PV $ 2.00 $ 2.02 $ 2.06
    Stock Price $ 234.89

    Year 5 Which year the dividend growth r


    D1
    P0  P4 =
    R g $ 260.24

    STOCK VALUATION - What SHOULD BD the price of the stock?

    Year 0 Year 1 Year 2 Year 3


    Growth rate 3% 2% 6%
    g1 g2 g3
    Dividend $ 1.00 $ 1.03 $ 1.05 $ 1.11

    Total D $ 1.00 $ 1.03 $ 1.05 $ 1.11


    PV $ 0.98 $ 0.95 $ 0.96
    Stock Price $ 28.15

    Year 5 Which year the dividend growth r

    P4 =
    $ 29.53
    R= 3%
    Year 4 Year 5 Year 6
    6% 7% 2%
    g4 g5 g6
    $ 2.38 $ 2.55 $ 2.60
    $ 260.24
    $ 2.38 $ 262.79
    $ 2.12 $ 226.69

    ear the dividend growth rate to be constant?

    D5/ (R - g)
    Total value of dividend at Year 4 for all expected dividends in year 5, year 6, 7, …..

    Year 4 Year 5 R= 5%
    5% 1%
    g4 g5
    $ 1.17 $ 1.18
    $ 29.53
    $ 30.69 $ 1.18
    $ 25.25

    ear the dividend growth rate to be constant?

    D5/ (R - g)
    Total value of dividend at Year 4 for all expected dividends in year 5, year 6, 7, …..
    Buy the bond with the face value of $1000, coupon rate is 10% per year. Invest for 7 years
    Assume the current market interest rate is 12% per year
    1 What should be the price of the bond?
    2 Let assume that you delay your investment for 1 year and all information remains the same
    What should be the new price of the bond (when you invest one year from now)
    3 Assume interest rate increases by 1% (compared to question 1), what is the bond price?
    4 For Q1, assuming the coupon payment is semiannual. How much should you pay to
    invest in the bond?
    Q1 Q2 Q3 Q4
    Face value FV 1000 1000 1000 1000
    Coupon rate 10% 10% 10% 10%
    Coupon paymentPMT 100 100 100 50
    How long? N 7 6 7 14
    Market rate I/Y 12% 12% 13% 6%
    Bond price PV -$908.72 -$917.77 -$867.32 -$907.05
    est for 7 years

    mation remains the same.


    ear from now)
    what is the bond price?
    should you pay to

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