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Consider a firm that had been priced using an 8.5 percent growth rate and a 10.5 percent required return. The firm recently paid a $2.30
Consider a firm that had been priced using an 8.5 percent growth rate and a 10.5 percent required return. The firm recently paid a $2.30 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 9.0 percent rate. |
How much should the stock price change (in dollars and percentage)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
Change in stock price | $ |
Change in stock percent | % |
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