Company Douglas LTD paid dividend of $5.20 for 7 years and then stopped for good. The companys

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Company Douglas LTD paid dividend of $5.20 for 7 years and then stopped for good. The company’s cost of capital is based on the following information

Valuation of share when a company pays Dividend for a

while and stops after

Real Rate or Real GDP

1.4%

CPU for last year

7950

Current CPU

8240

Risk Premium

REQUIRED

1. Calculate the risk free rate

2. Calculte the Vo of the company

Related Book For answer-question

Managerial Accounting Creating Value in a Dynamic Business Environment

ISBN: 978-0078025662

10th edition

Authors: Ronald Hilton, David Platt

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Posted Date: Nov 08, 2022 04:51 AM

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Company Douglas LTD paid dividend of $5.20 for 7 years and then stopped for good. The companys

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Managerial Accounting Creating Value in a Dynamic Business Environment

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