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Consider a firm that had been priced using a 12.00 percent growth rate and a 17.00 percent required rate. The firm recently paid a $2.10

Consider a firm that had been priced using a 12.00 percent growth rate and a 17.00 percent required rate. 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 a 14.00 percent rate. How much should the stock price change (in dollars and percentage)?

Multiple Choice

A. $32.76, 70.00%

B. $32.76, .70%

C. $26.00, 100.00%

D. $26.00, 1.00%

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