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Investors demand a rate of return of 17 percent on Vaughn Food Inc.'s common shares. These shares are currently trading at $20 per share. Dividend
Investors demand a rate of return of 17 percent on Vaughn Food Inc.'s common shares. These shares are currently trading at $20 per share. Dividend payout for the current year is expected to be $2.80 per share. (a) Your answer is correct. What is the implied long-term growth rate that shareholders expect? (Round answer to 1 decimal place, e.g. 15.6\%.) Growth rate % eTextbook and Media (b) If, because of a recession, the dividend growth rate is projected to be 0 , what will be the new share value? (Round answer to 2 decimal places, e.g. 15.61.) Share price \$ Attempts: 2 of 3 used Using multiple attempts has impacted your score. 25% score reduction after attempt 1
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