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Consider a firm that had been priced using a 12 percent growth rate and a 14 percent required return.The firm recently paid a 2.10 dividend.

Consider a firm that had been priced using a 12 percent growth rate and a 14 percent required return.The firm recently paid a 2.10 dividend. The firm just announced that because of a new joint venture, it will likely grow at a 12.5 percent rate.

How much should the stock price change in dollars and percentage?

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