On the HLOOKUP_VLOOKUP tab using LOOKUP assignment.xlsx, provide the value the VLOOKUP formula return for the BASE terminal growth (g) scenario (cell B17)?

ANSWER FORMAT = x.xx NOT x%

DO NOT WORRY IF CARMEN ADDS ZEROS AFTER YOUR ANSWER

Question

On the HLOOKUP_VLOOKUP tab using LOOKUP assignment.xlsx, provide the value the VLOOKUP formula return for the BASE terminal growth (g) scenario (cell B17)?

ANSWER FORMAT = x.xx NOT x%

DO NOT WORRY IF CARMEN ADDS ZEROS AFTER YOUR ANSWER

BlackTom AI · Accepted Answer

Question restatement: You are asked to determine the value that the VLOOKUP formula returns in the BASE terminal growth (g) scenario, specifically for cell B17 on the HLOOKUP_VLOOKUP tab in the LOOKUP assignment.xlsx. The required answer format is numeric with two decimal places (x.xx), and the two candidate results provided are 2 and 0.02. There are no explicit answer choices listed beyond these two values.

Option 1: 2
- Interpretation: If the VLOOKUP result is 2, the function is returning a whole-number value. In the context of a terminal growth rate, a value of 2 would typically imply 2 or 200% depending on whether the value is treated as a raw unitless number or a percentage. Since the instruction specifies the answer format as x.xx (two decimals) and asserts no percentage notation (not x%), the raw value 2 would be shown as 2.00 if formatted to two decimals. Consider whether the data table you’re looking up is storing a rate in percent form (e.g., 200%) or as a unitless multiplier (e.g., 2.0 meaning a doubling).
- Potential implications: If the lookup is pulling a growth rate expressed as a multiplier (2.00 means double), the interpretation differs from a percentage-based rate. Confirm how the source table represents terminal growth (as a percentage or as a multiplier) and whether the cell formatting rounds or scales the value. A mismatch between the data’s intended meaning and the display format could cause confusion.

Option 2: 0.02
- Interpretation: A value of 0.02 is a small decimal that commonly represents a 2% growth rate when interpreted as a percentage (0.02 = 2%). If the workbook intends to show rates in decimal form, 0.02 could be the correct raw value and would appear as 0.02 after two-decimal formatting. If instead the workbook expects a percentage display, you might expect to see 2.00% or similar, unless formatting suppresses the percent symbol.
- Potential implications: The decimal 0.02 is typical for long-run terminal growth in many financial models (2%). However, if the LOOKUP table stores the data as percentages and Excel is configured to display as percentages, you could see 2.00% rather than 0.02. Conversely, if the table stores a multiplier and the display is still in decimal form, 0.02 would represent 2% but would require specific formatting to show as 0.02 rather than 2%.

General reasoning and checks you can perform to discern which option is correct:
- Inspect the source table (the LOOKUP range) to see how terminal growth values are represented: as multipliers (e.g., 2 for 200%, 1.02 for 2% growth) or as decimals/percentages (e.g., 0.02 for 2%).
- Look at the cell formatting for B17 and the VLOOKUP result cell to determine whether formatting hides or reveals a percentage symbol or adjusts the decimal places.
- Review the formula syntax: VLOOKUP typically returns exactly the value found in the first column of the lookup range, so the numeric value you see is a direct reflection of the data in the lookup table, not a computation step within VLOOKUP itself.
- Consider the typical convention used in this workbook. If the BASE terminal growth (
  g) is meant to be a percentage rate, 0.02 is a common decimal representation of 2%, whereas 2 would be unusual unless the data intentionally uses a multiplier.

Given these considerations, the correct interpretation relies on the workbook’s data representation and formatting choices rather than on a standalone rule. By verifying how the terminal growth values are stored (multiplier vs. decimal/percentage) and inspecting the cell’s number formatting, you will determine whether 2 (displayed as 2.00) or 0.02 is the value returned by the VLOOKUP for cell B17.

BUSFIN 4201 SP2025 (4533) FORMULAS & FUNCTIONS - QUIZ 2

On the HLOOKUP_VLOOKUP tab using LOOKUP assignment.xlsx, provide the value the VLOOKUP formula return for the BASE terminal growth (g) scenario (cell B17)? ANSWER FORMAT = x.xx NOT x% DO NOT WORRY IF CARMEN ADDS ZEROS AFTER YOUR ANSWER

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