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Consider a firm that had been priced using a 10.5 percent growth rate and a 12.5 percent required return. The firm recently paid a $2.10

Consider a firm that had been priced using a 10.5 percent growth rate and a 12.5 percent required return. The firm recently paid a $2.10 dividend. The firm has just announced that because of a new joint venture, it will likely grow at an 11.0 percent rate.

How much should the stock price change (in dollars and percentage)? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

Change in stock price $
Change in stock percent %

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