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Consider a firm that had been priced using a 12.5 percent growth rate and a 14.5 percent required return. The firm recently paid a $1.65
Consider a firm that had been priced using a 12.5 percent growth rate and a 14.5 percent required return. The firm recently paid a $1.65 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 13.0 percent rate. How much should the stock price change (in dollars and percentage)? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Answer is complete but not entirely correct. 96.07 X 33.93 Change in stock price Change in stock percent $ %
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