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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

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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 ]

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