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Company Douglas LTD paid dividend of $5.20 for 7 years and then stopped for good. The companys cost of capital is based on the following
Company Douglas LTD paid dividend of $5.20 for 7 years and then stopped for good. The companys 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
2%
REQUIRED
1. Calculate the risk free rate
2. Calculte the Vo of the company
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
