Sheet1

Page 1
Implied Risk Premium Calculator
Enter level of the index = 970.43
Enter current dividend yield = 1.60% (if you want, you can add toc! "uy"ac! to thi nu#"er$
Enter ex%ected &rowth rate in earnin& for next ' year for #ar!et = (.00%
Enter current lon& ter# "ond rate = '.9)%
Enter ri! %re#iu# = '.'0%
Enter ex%ected &rowth rate in the lon& ter# = '.9)% (* a default, it i et e+ual to lon& ter# "ond rate$
1 ) 3 4 '
Ex%ected ,ividend = -16.76 -1(.10 -19.'' -)1.11 -)).(0
Ex%ected .er#inal /alue = -439.16
0reent /alue = -1'.04 -14.'( -14.13 -13.70 -)69.03
1ntrinic /alue of 1ndex = -3)6.49
1#%lied 2i! 0re#iu# in current level of 1ndex = 1.(6% (Go under Tools and choose Solver: See below)
1 ) 3 4 '
Ex%ected ,ividend = -16.76 -1(.10 -19.'' -)1.11 -)).(0
Ex%ected .er#inal /alue = -1,)97.9)
0reent /alue = -1'.'' -1'.'( -1'.61 -1'.6' -90(.03
1ntrinic /alue of 1ndex = -970.43
This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it)
!nter current level of inde" where you see #$%&'
Sheet1
Page (
(if you want, you can add toc! "uy"ac! to thi nu#"er$
This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it)