Company A paid $2.75 in dividend to the shareholders. The company provides some information concerning the cost of capital and growth in dividend

Net Income

$189,400

Total Assets

$456,000

Equity

$1250,000

Total Liabilities

?

# of shareholders

100,000

Dividend payout

45%

GDP Real

2.5%

Inflation Rate

1.5%

Market risk

3.8

Index [Beginning]

19,575

Index [Ending]

18,550

Rf = GDP + price level

?

Government bond rate = GDP + price level

Required

1. Calculate total liabilities

2. Find risk free rate

3. Calculate required rate of return [r]

4. Using the ROE and b , find g

5. Calculate the intrinsic value [Vo]