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42. Assume that XYZ Corporation currently has a share price of $137.76, an expected growth rate of 0.03 (3%), a required rate of return of
42.
Assume that XYZ Corporation currently has a share price of $137.76, an expected growth rate of 0.03 (3%), a required rate of return of 0.07 (7%) and past dividend of $5.35 per share. XYZ Corporation have reported consistently high returns and are going to announce a higher growth rate to the market. What would the percentage change of the price of XYZ shares be if the expected growth rate changed to 0.039? (Answer in absolute percentage terms, to 2 decimal places, for example: 14.56 or -18.42)
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