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CO t Consider a firm that had been priced using a 10 percent growth rate and a 14 percent required rate. The firm recently paid

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CO t Consider a firm that had been priced using a 10 percent growth rate and a 14 percent required rate. The firm recently paid a $1.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 12 percent rate. How much should the stock price change in dollars terms? Show your working red d out of A

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