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You are valuing the Vancouver Rain-Making Company (VRM) and need to calculate the following: a.Required rate of return (assume the market risk premium is 8

You are valuing the Vancouver Rain-Making Company (VRM) and need to calculate the following:

a.Required rate of return (assume the market risk premium is 8 percent, the risk-free rate is 3 percent, and the beta is 1.28)

b.Price of VRM based on the current dividend of $1.5 and a dividend growth rate of 5 percent

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