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Changes in Growth and Stock Valuation Consider a firm that had been priced using a 11.00 percent growth rate and a 15.00 percent required rate.
Changes in Growth and Stock Valuation Consider a firm that had been priced using a 11.00 percent growth rate and a 15.00 percent required rate. The firm recently paid a $1.40 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 13.00 percent rate. How much should the stock price change (in dollars and percentage)?
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