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Please answer asap, will upvote! Vaughn Financial Ltd. is interested in investing in Scion Systems Inc. Scion's current dividend is $5.70 and its shares are
Please answer asap, will upvote!
Vaughn Financial Ltd. is interested in investing in Scion Systems Inc. Scion's current dividend is $5.70 and its shares are selling for $40. The required rate of return for firms like Scion is 9 percent. Vaughn has conducted an extensive analysis of the company and believes that the dividend growth rate should be 4 percent. Should Vaughn buy the stock at $40 ? (Round answer to 2 decimal places, e.g. 105.25.) Price of the stock should be $ Vaughn buy the stockStep by Step Solution
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