You are valuing the Vancouver Rain-Making Company (VRM) and need to calculate the following: a. Required rate

Question:

You are valuing the Vancouver Rain-Making Company (VRM) and need to calculate the following:
a. Required rate of return
b. Price of VRM based on the current of $1.25 and a growth rate of 3 percent.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...