Question: A successful joint venture is expected to result in the 4.0% growth rate until 2000 but would increase the companys normal growth rate to a

A successful joint venture is expected to result in the 4.0% growth rate until 2000 but would increase the company’s normal growth rate to a constant 8.00% after that time. The joint venture also is expected to increase investors’ required return to 9.50%.

a. Based on this information, what is the value of the company’s stock?

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