Hi....i am a student using financial modelling in excel and i have come across a problem when i used a code for calculating the cost of equity using two stage gordon model. Please help......the error is #NAME#...
THIS IS THE CODE
Function TwoStageGordon(P0, Div0, Highgrowth, Highgrowthyrs, Normalgrowth)
High = 4
Low = 0

Do While (High - Low) > 0.0000001
Estimate = (High + Low) / 2
factor = (1 + Highgrowth) / (1 + Estimate)
Term1 = Div0 * factor * (1 - factor ^ Highgrowthyrs) / _
(1 - factor)
Term2 = Div0 * factor ^ Highgrowthyrs * _
(1 + Normalgrowth) / (Estimate - Normalgrowth)
If (Term1 + Term2) > P0 Then
Low = (High + Low) / 2
Else: High = (High + Low) / 2
End If
Loop
TwoStageGordon = Estimate
End Function