Changes in Growth and Stock Valuation Consider a firm that had been priced using a 10 percent

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Changes in Growth and Stock Valuation Consider a firm that had been priced using a 10 percent growth rate and a 12 percent required return. The firm recently paid a $1.20 dividend. The firm just announced that because of a new joint venture, it will likely grow at a 10.5 percent rate. How much should the stock price change (in dollars and percentage)? (LG5)

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Finance Applications And Theory

ISBN: 9780073530673

2nd Edition

Authors: Marcia Cornett, Troy Adair, John Nofsinger

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