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Can you help? Ecology Labs Inc. will pay a dividend of $3.20 per share in the next 12 months [3]). The required rate of return
Can you help?
Ecology Labs Inc. will pay a dividend of $3.20 per share in the next 12 months [3]). The required rate of return {ire} is 20 percent and the constant growth rate is 10 percent. [Each question is independent of the others.) a. Compute the price of Ecology Labs' common stock. [Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Assume K5, the required rate of return, goes up to 23 percent. What will be the new price? {Do not round intermediate calculations. Round your answer to 2 decimal places.) c. Assume the growth rate {9} goes up to 12 percent. What will be the new price? XE goes back to its original value of 20 percent {Do not round intermediate calculations. Round your answer to 2 decimal places.) _Step by Step Solution
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