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7. Use the following information for the next three problems in this spreadsheet Assume that the dividend payout ratio will be 55 percent when the
7. Use the following information for the next three problems in this spreadsheet Assume that the dividend payout ratio will be 55 percent when the rate on long-term government bonds falls to 9 percent. Since investors are becoming more risk averse, the equity risk premium will rise to 8 percent and investors will require a 7 percent return. The return on equity will be 13 percent. Show your calculations, formula and highlight the answer choice in the multiple section area
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