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Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects
Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects
growth of per year for years. By then, other firms will have copycat technology, competition will drive down profit margins, and
the sustainable growth rate will fall to The most recent annual dividend was DIVO $ per share.
Compute the value of Better Mousetraps for assumed sustainable growth rates of through in increments of and compute
the percentage change in the value of the firm for each percentage point increase in the assumed final growth rate, using a
required rate of return of
Note: Do not round intermediate calculations. Round your answers to decimal places.
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