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Waterway Financial Ltd. is interested in investing in Scion Systems Inc. Scion's current dividend is $5.90 and its shares are selling for $40. The required
Waterway Financial Ltd. is interested in investing in Scion Systems Inc. Scion's current dividend is $5.90 and its shares are selling for $40. The required rate of return for firms like Scion is 9 percent. Waterway has conducted an extensive analysis of the company and believes that the dividend growth rate should be 4 percent. Should Waterway buy the stock at $40? (Round answer to 2 decimal places, e.g. 105.25.) Price of the stock should be $ Waterway buy the stock
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