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a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to
a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to 6% and lower the required return to 12%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 6% and raise the required return to 18%. d. Merge with another firm, which will reduce the growth rate to 2% and raise the required return to 18%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 8% and increase the required return to 18% a. If the firm does nothing that will leave the key financial variables unchanged, the value of the firm will be $. (Round to the nearest cent.) d. If the firm merges with another firm that will reduce the growth rate to 2% and raise the required return to 18%, the value of the firm will be $ (Round to the nearest cent.) (Round to the nearest cent.)
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