Stock valuation with two-stage growth tied to plowback policy Current ROE Plowback ratio 0.25 Return on equity 0.5 The ratio of retained earnings over net income Payout ratio 0.5 The ratio of...

use EXCEL and provide Cell References for Calculations.

Extracted text: Stock valuation with two-stage growth tied to plowback policy Current ROE Plowback ratio 0.25 Return on equity 0.5 The ratio of retained earnings over net income Payout ratio 0.5 The ratio of dividends paid over net income 0.125 Sustainable growth rate = ROE * plowback ratio EPS, DIV. $4 $2 r 0.2 P. $ 30.00 General Motors is considering the share price impact of a reduction in plowback ratio to 0.30 starting in year 6 onward. Use a template calculate the price impact of such as policy change. ROE Plowbacknew tuố and onward 0.2 0.3 Plowback,el to 5 remains @ 0.5 Payoutnewt=6 and onward 0.7 Payout to 5 remains @ 0.5 Calculate the price impact of reducing plowback ratio to 0.3 starting in year 6 onward.