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A firm pays a $1.40 dividend at the end of year one. It has a share price of $50(P) and a constant growth rate (g)

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A firm pays a $1.40 dividend at the end of year one. It has a share price of $50(P) and a constant growth rate (g) of 5 percent. a. Compute the required (expected) rate of return (Ke). ( Do not round intermediate calculations. Round the final answer to 2 decimal places.) Required rate of return % Also indicate whether each of the following changes would make the required rate of return ( Ke ) go up or down. (In each question below, assume only one variable changes at a time. No actual numbers are necessary.) b. If the dividend payment increases; Ke will go up. Ke will go down. Ke remains constant. c. If the expected growth rate increases: Ke will go up. Ke will go down. Ke remains constant. d. If the stock price increases; Ke will go up. Ke will go down. Ke remains constant

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