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Implied Risk Premium Calculator

Enter level of the index = Enter current dividend yield = Enter expected growth rate in earnings for next 5 years for market = Enter current long term bond rate = Enter risk premium = Enter expected growth rate in the long term = 1418.3 3.75% 6.00% 4.70% 4.91% 4.70%

Intrinsic Value Estimate

Expected Dividends = Expected Terminal Value = Present Value = Intrinsic Value of Index = Implied Risk Premium in current level of Index = 1 Expected Dividends = Expected Terminal Value = Present Value = Intrinsic Value of Index = $56.38 $51.79 $1,418.30 1 $56.38 $51.43 $1,200.06 2 $59.76 $49.74 3 $63.35 $48.10 4 $67.15 $46.52 5 $71.18 $1,517.73 $1,004.26

Implied Risk Premium 4.16% (Go under Tools and choose Solver: See below)
2 $59.76 $50.43 3 $63.35 $49.11 4 $67.15 $47.82 5 $71.18 $1,792.42 $1,219.15

This is a picture of the solver option, with the inputs that I used (Do not try to enter numbers in it). Enter current level of index where you see 759.64.

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$75.80

enter numbers in it).

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