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A firm will pay a dividend of $3 per share in the next 12 months (D_1). The required rate of return is 10 percent and

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A firm will pay a dividend of $3 per share in the next 12 months (D_1). The required rate of return is 10 percent and the constant growth rate is 5 percent. Compute P_0. (For parts b, c, d in this problem, all variables remain the same except the one specifically changed. Each question is independent of the others.) Assume r_s, the required rate of return, goes up to 12 percent; what will be the new value of P_0? Assume the growth rate (g) goes up to 7 percent; what will be the new value of P_0? r_s goes back to its original value of 10 percent. Assume D_1 is $3.50; what will be the new value of P_0? Assume r_s is at its original value of 10 percent and g goes back to its original value of 5 percent

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