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activities. Determine the impact on share price for each of the following proposed actions. a. Do nothing, which will leave the key financial variables unchanged.

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activities. Determine the impact on share price for each of the following proposed actions. 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 9% and lower the required return to 12%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 8% and raise the required return to 16%. d. Merge with another firm, which will reduce the growth rate to 3% and raise the required return to 16%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 9% and increase the required return to 16%

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