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Statistics of the company, Company B , to be valued:Dividend / share just paid = Ksh 1 5 Historical dividend growth rate = 1 0
Statistics of the company, Company B to be valued:Dividendshare just paid KshHistorical dividend growth rate per year. This is expected to be maintained in thefuture. Company B is entirely equity financed.Statistics of a listed company in the same business: Rf risk free rate Rm return from the market This company is geared in the ratio Debt: Equity :Tax rate Required;iCalculate the required rate of return assuming that company b is also geared in a similar way to company Aii.Assuming there are gearing differences
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