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cology Labs Incorporated will pay a dividend of $ 3 . 2 0 per share in the next 1 2 months ( D 1 )

cology Labs Incorporated will pay a dividend of $3.20 per share in the next 12 months (D1)
. The required rate of return (Ke)
is 20 percent and the constant growth rate is 10 percent.
Note: Each question is independent of the others.
Compute the price of Ecology Labs' common stock.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume Ke
, the required rate of return, goes up to 23 percent. What will be the new price?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume the growth rate (g) goes up to 12 percent. What will be the new price? Ke
goes back to its original value of 20 percent.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume D1
is $4.00. What will be the new price? Assume Ke
is at its original value of 20 percent and g goes back to its original value of 10 percent.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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