Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 23, 2024

Subject- Finance Math Question 3 Part 1 Valuation of share when a company pays Dividend for a while and stops after Company Douglas LTD paid

Subject- Finance Math
Question 3 Part 1 Valuation of share when a company pays Dividend for a while and stops after 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 Real Rate or Real GDP CPU for last year Current CPU Risk Premium 1.4% 7950 8240 2% REQUIRED 1. Calculate the risk free rate 2. Calculte the Vo of the company [ 15 marks ]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

5th Edition

0072339160, 978-0072339161

More Books

Students also viewed these Finance questions

Question

★★★★★

Suppose that a = (a1 an) Rn, that fj: R R for j = 1, 2,..., n, and that g(x1, x2,..., xn) := f1(x1) fn(xn). a) Prove that if fj(t) fj(a) as t aj, for each j = 1,..., n, then g(x) f1(a1) ...

Answered: 1 week ago

Question

★★★★★

Online Goal Management Go to the Chapter 3 section of www.mhhe.com/waitley5e for the link to a Web site that lets you select and manage your goals online. Explore the premade Goalplans on the site...

Answered: 1 week ago

Question

★★★★★

Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are...

Answered: 1 week ago

Question

★★★★★

The files provided in the code editor to the right contain syntax and/or logic errors. In each case, determine and fix the problem, remove all syntax and coding errors, and run the program to ensure...

Answered: 1 week ago

Question

★★★★★

The following information is available for Gildan Activewear Inc., headquartered in Montreal, for three recent fiscal years (in U.S. $ thousands): 2016 2015 2014 Inventory $ 851,033 $ 779,407 $...

Answered: 1 week ago

Question

★★★★★

Which item would most likely be classified as a fixture once attached onto real property? Select one: A. Wooden fence B. Plasma 50 TV C. Refrigerator D. Countertop microwave

Answered: 1 week ago

Question

★★★★★

Which of the following is NOT a remedial measure to control business cycles. Question 3 options: Indirect measures Monetary measures Fiscal measures Physical measures

Answered: 1 week ago

Question

★★★★★

Leahy inc, has 10 customers that account for all of its $1,472,000 of net income. its activity-based costing system is able to assign all costs, except for $200,000 of general administrative costs,...

Answered: 1 week ago

Question

★★★★★

When carrying out the control process at MGT , Inc. s manufacturing plant, Sally focuses her attention on the few defective components produced on the assembly line. Although she is concentrating on...

Answered: 1 week ago

Question

★★★★★

Two events each have the probability 0.2 of occurring. The probability that neither is 0.6. These events are: A) mutually exclusive B) independent C) conditional D) mutually exclusive and independent...

Answered: 1 week ago

Question

★★★★★

=+4. From a legal and ethical standpoint, what are some benefits and challenges of using influencers and social media personalities on social media?

Answered: 1 week ago

Question

★★★★★

=+1. Write an ethical code of conduct for your social media practices. What are some of the main concepts you feel are necessary to adhere to for your own personal conduct online? What concepts or...

Answered: 1 week ago

Question

★★★★★

=+Am I aware of the power (and risks) associated with saying something online and the effects it may have on another person?

Answered: 1 week ago

Previous Question Next Question