Q. How to set up spreadsheet for questions given below. I do not know how it must be set up even.
Suppose that the company starts with book value each share of= 1000, its return on equity (ROE) is 15%, payout ratio is 50% also opportunity cost of capital is 10%.
a) Create the Excel spreadsheet to illustrate how book value each share, earning each share also dividends each share change over years.
b) Change values of ROE also payout ratio also show how stock price response.