Data folder: /home/hatch/workspace/maineblock-products/data 

Step 1. Table 10.1 rebuilt from dataset D7
Alphabet share count in the corrected lab file: 12,230,000,000 (corrected count per errata D-2: 12,230,000,000)
AAPL: price 339.50, diluted EPS 8.74, P/E 38.8, P/S 10.61, P/FCF 36.2, EV 4997.5, EBITDA 168.0, EV/EBITDA 29.8, dividend yield 0.32 percent
MSFT: price 531.87, diluted EPS 17.95, P/E 29.6, P/S 11.90, P/FCF 59.0, EV 3968.8, EBITDA 189.5, EV/EBITDA 20.9, dividend yield 0.67 percent
GOOGL: price 340.27, diluted EPS 19.90, P/E 17.1, P/S 9.33, P/FCF 78.1, EV 4205.8, EBITDA 172.9, EV/EBITDA 24.3, dividend yield not reported

Step 2. Reverse discounted cash flow (Section 10.2)
Model rate from the Chapter 9 build: 9.055 percent (the Chapter 7 beta at full precision, 1.0922, prints as 1.092); base revenue 416.2 billion dollars.
Constant five-year growth rate that returns 271.86 dollars: 25.5 percent a year.
The same model at the delivered growth of 5.9 percent: 125.03 dollars (the fading-path Chapter 9 value is 121.66).

Step 3. Coca-Cola dividend history and discount rate
Dividends per share: 2010 0.88, 2015 1.32, 2025 2.04 dollars.
Historical growth: 2010 to 2025 5.77 percent a year (exact 5.7653); 2015 to 2025 4.45 percent a year (exact 4.4493).
Discount rate: 4.14 + 0.392 x 4.50 = 5.904 percent (prints as 5.90 percent).

Step 4. Table 10.2 dividend variants for Coca-Cola
Gordon at the short-window rate 4.45 percent: 146.55 dollars.
Gordon at the long-window rate 5.77 percent: 1610.23 dollars (the gap k - g is 0.13 points).
Payout on the corrected basis 80.1 percent; return on equity 40.7 percent; sustainable growth 8.12 percent.
Sustainable rate 8.10 percent against the discount rate 5.90 percent: the rate exceeds the discount rate, so the Gordon value does not apply. The division on the printed rates returns -100.4 dollars, an artifact with no economic content.

Step 5. Total payout variant
2025 total payout per share from dataset D8: 2.2084 dollars (chapter prints 2.21).
Total-payout Gordon value at the printed base of 2.21 dollars: 158.76 dollars.
December 2025 price 69.91 dollars; dividend yield 2.92 percent; total-payout yield 3.16 percent.

Step 6. Two-stage variant and implied growth
Two-stage value (4.45 percent for five years, then 2.5 percent): 67.11 dollars, against the December 2025 price of 69.91 dollars.
Perpetual growth rate the price of 69.91 dollars implies at the same discount rate: 2.90 percent.
Justified trailing price to earnings at the short-window rate: payout 0.801 over a gap of 1.45 points = 55.1.

Step 7. Sensitivity of value to the gap k - g
Gap 8.00 points: value 26.63 dollars.
Gap 4.00 points: value 53.27 dollars.
Gap 2.00 points: value 106.54 dollars.
Gap 1.45 points: value 146.95 dollars.
Gap 1.00 points: value 213.08 dollars.
Gap 0.50 points: value 426.16 dollars.
Gap 0.25 points: value 852.31 dollars.
Gap 0.13 points: value 1639.06 dollars.
At Coca-Cola's rate at full precision, 5.904 percent, growth of 4.90 percent leaves a gap of 1.004 points: 213.1 dollars (Section 10.9).

Step 8. Second payer: Johnson and Johnson
Dividends per share grew from 2.25 (fiscal 2011) to 5.14 (fiscal 2025): 6.08 percent a year (exact 6.0785).
Discount rate 5.68 percent (prints as 5.68); latest payout 46.2 percent; sustainable growth from the printed components, retention 53.8 percent times return on equity 32.9 percent, 17.70 percent.
Historical-rate division: 5.14 x 1.0608 / (5.6835 - 6.08 points) = -1375 dollars. Refused: the growth rate exceeds the discount rate.
Sustainable-rate division: 5.14 x 1.1769 / (5.6835 - 17.69 points) = -50.38 dollars. Refused on the same ground.
Two-stage value (6.08 percent for five years, then 2.5 percent): 194.61 dollars, against the fiscal-year-end price of 206.95 dollars.

Part B. Solution to the R companion lane: NVIDIA as a fourth peer
NVDA: price 216.47, diluted EPS 7.93, P/E 27.3, P/S 17.22, P/FCF 41.1, EV 5227.9, EBITDA 201.3, EV/EBITDA 26.0, dividend yield 0.13 percent.

Chapter 10 lab complete.
