0 - 5 B 9 = Investment A Į ) A Investment A Investment B Investment C 3 ) Formulas B Investment A Investment B Investment C S 5 Formulas = C Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Growth Rate (Expected) Year 0 11% $3,000 Year 1 "Take each value in column C and multiply it by its adjacent growth rate in column B (which is 1 plus the percentage expected growth)." ABSOLUTE CELL REFERENCES Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Year 1 #N/A E Year 1 Formulas #N/A #N/A #N/A #N/A #N/A #N/A Year 2 #N/A Year 2 F #N/A #N/A #N/A ▼ ✓ Year 3 #N/A G H RELATIVE CELL REFERENCES Year 3 #N/A #N/A #N/A Year 4 ▼ #N/A Year 5 #N/A #N/A #N/A #N/A Year 5 "Start in column D, then move across allowing the column to change, and multiply the preceding value by its FIXED growth rate in cell $B$13 (which is 1 plus the percentage expected growth) to get the current valu FIXED COLUMN / RELATIVE ROW CELL REFERENCES Year 4 #N/A #N/A #N/A Year 6 ▼ #N/A Year 6 #N/A #N/A #N/A J ▼ Year 7 #N/A Year 7 K #N/A #N/A #N/A Year 8 #N/A Year 8 #N/A #N/A #N/A L Year 9 "Start in column D, then move across, and multiply the preceding value by its growth rate in cell $B22 (which is 1 plus the percentage expected growth) to get the current value." "By changing the growth rate cell from $B$22, etc. to $B22, the row of the growth rate is allowed to change yet remain in column B while filling down to the other two Investments." #N/A Year 9 ▼ #N/A ▼ #N/A #N/A ▼ M ✓ Year 10 #N/A Year 10 #N/A #N/A #N/A N O
0 - 5 B 9 = Investment A Į ) A Investment A Investment B Investment C 3 ) Formulas B Investment A Investment B Investment C S 5 Formulas = C Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Growth Rate (Expected) Year 0 11% $3,000 Year 1 "Take each value in column C and multiply it by its adjacent growth rate in column B (which is 1 plus the percentage expected growth)." ABSOLUTE CELL REFERENCES Growth Rate (Expected) Year 0 11% $3,000 6% $3,000 4% $3,000 Year 1 #N/A E Year 1 Formulas #N/A #N/A #N/A #N/A #N/A #N/A Year 2 #N/A Year 2 F #N/A #N/A #N/A ▼ ✓ Year 3 #N/A G H RELATIVE CELL REFERENCES Year 3 #N/A #N/A #N/A Year 4 ▼ #N/A Year 5 #N/A #N/A #N/A #N/A Year 5 "Start in column D, then move across allowing the column to change, and multiply the preceding value by its FIXED growth rate in cell $B$13 (which is 1 plus the percentage expected growth) to get the current valu FIXED COLUMN / RELATIVE ROW CELL REFERENCES Year 4 #N/A #N/A #N/A Year 6 ▼ #N/A Year 6 #N/A #N/A #N/A J ▼ Year 7 #N/A Year 7 K #N/A #N/A #N/A Year 8 #N/A Year 8 #N/A #N/A #N/A L Year 9 "Start in column D, then move across, and multiply the preceding value by its growth rate in cell $B22 (which is 1 plus the percentage expected growth) to get the current value." "By changing the growth rate cell from $B$22, etc. to $B22, the row of the growth rate is allowed to change yet remain in column B while filling down to the other two Investments." #N/A Year 9 ▼ #N/A ▼ #N/A #N/A ▼ M ✓ Year 10 #N/A Year 10 #N/A #N/A #N/A N O
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
Transcribed Image Text:0
-
5
B
9
= Investment A
Į
)
A
Investment A
Investment B
Investment C
3
)
Formulas
B
Investment A
Investment B
Investment C
S
5 Formulas
=
C
Growth Rate
(Expected) Year 0
11% $3,000
6% $3,000
4% $3,000
Growth Rate
(Expected) Year 0
11% $3,000
Year 1
"Take each value in column C and multiply it by its adjacent growth rate in column B (which is 1 plus the percentage expected growth)."
ABSOLUTE CELL REFERENCES
Growth Rate
(Expected) Year 0
11% $3,000
6% $3,000
4% $3,000
Year 1
#N/A
E
Year 1
Formulas
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
Year 2
#N/A
Year 2
F
#N/A
#N/A
#N/A
▼
✓
Year 3
#N/A
G
H
RELATIVE CELL REFERENCES
Year 3
#N/A
#N/A
#N/A
Year 4
▼
#N/A
Year 5
#N/A
#N/A
#N/A
#N/A
Year 5
"Start in column D, then move across allowing the column to change, and multiply the preceding value by its FIXED growth rate in cell $B$13 (which is 1 plus the percentage expected growth) to get the current valu
FIXED COLUMN / RELATIVE ROW CELL REFERENCES
Year 4
#N/A
#N/A
#N/A
Year 6
▼
#N/A
Year 6
#N/A
#N/A
#N/A
J
▼
Year 7
#N/A
Year 7
K
#N/A
#N/A
#N/A
Year 8
#N/A
Year 8
#N/A
#N/A
#N/A
L
Year 9
"Start in column D, then move across, and multiply the preceding value by its growth rate in cell $B22 (which is 1 plus the percentage expected growth) to get the current value."
"By changing the growth rate cell from $B$22, etc. to $B22, the row of the growth rate is allowed to change yet remain in column B while filling down to the other two Investments."
#N/A
Year 9
▼
#N/A
▼ #N/A
#N/A
▼
M
✓
Year 10
#N/A
Year 10
#N/A
#N/A
#N/A
N
O
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