FIN 534 RANK Change The World /fin534rank.com FIN 534 RANK Change The World /fin534rank.com | Page 66

to get the correct forecasted dividends and then the estimated TV. She
also notes that the estimated value for rs, at the top of the template, is
also just a guess, and you must replace it with a value that will cause the
Calculated Price shown at the bottom to equal the Actual Market Price.
She suggests that, after you have put in the correct dividends, you can
manually calculate the price, using a series of guesses as to the
Estimated rs. The value of rs that causes the calculated price to equal the
actual price is the correct one. She notes, though, that this trial-and-error
process would be quite tedious, and that the correct rs could be f ound
much faster with a simple Excel model, especially if you use Goal Seek.
What is the value of rs?
a. 11.84%
b. 12.21%
c. 12.58%
d. 12.97%
e. 13.36%
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FIN 534 Week 4 DQ 1
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Week 4 discussion 1
Drawing on what you discovered in the e-Activity, discuss how
instances of corporate mismanagement or fraud should be taken into