42 3 points eBook Hint Print References Problem 10-29 (Algo) Common stock value under different market conditions [LO10-5] Ecology Labs Incorporated will pay a dividend of $7.20 per share in the next 12 months (D). The required rate of return (F percent and the constant growth rate is 8 percent. Note: Each question is independent of the others. a. Compute the price of Ecology Labs' common stock. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Price b. Assume Ke, the required rate of return, goes up to 25 percent. What will be the new price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. New price

Problem 10-29 (Algo) Common stock value under different market conditions [LO10-5] Ecology Labs incorporated will pay a dividend of $7.20 per share in the next 12 months (D1). The required rate of return percent and the constant growth rate is 8 percent. Note: Each question is independent of the others. a. Compute the price of Ecology Labs' common stock Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Assume K, the required rate of retum, goes up to 25 percent What will be the new price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Assume the growth rate (g) goes up to 11 percent What will be the new price? K, goes back to its original value of 20 percent. Note: Do not round intermedlate calculations. Round your answer to 2 decimal places. d. Assume D1 is $7.90. What wil be the new price? Assume K. is at its original value of 20 percent and g goes back to its original value of 8 percent Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Problem 10-29 (Algo) Common stock value under different market conditions [LO10-5] Ecology Labs incorporated wil pay a dividend of $720 per share in the next 12 months (D1). The required cote of return (Kk) \& 20 percent and the constant grownt rate is 8 percent Note: Each question is independent of the others. a, Compute the price of Ecology Labs' common stock. Note: Do not round intermediate calculations, Round your answer to 2 decimal places. b. Assume Kc, the required rate of return, goes up to 25 percent. What wil be the new price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places