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Dania Incorporated is growing at a rate of 4% per year. The current level of inflation is 3% per year and the GDP of the
Dania Incorporated is growing at a rate of 4% per year. The current level of inflation is 3% per year and the GDP of the country is growing at 2.5% per year. Investors in the company expect a return of 9% per year while the current risk-free rate of return is 1.5% per year. What is the discount rate you should use when you are doing a discounted cash flow analysis to determine the value of shares for the company?
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