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eBook Problem 11-01 The dividend-growth model may be used to value a stock: V D. (1+g) k-9 Round your answers to the nearest cent. a.

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eBook Problem 11-01 The dividend-growth model may be used to value a stock: V D. (1+g) k-9 Round your answers to the nearest cent. a. What is the value of a stock if: Do - $4.80 k 13% 9 - 7% $ W b. What is the value of this stock if the dividend is increased to $5.90 and the other variables remain constant $ c. What is the value of this stock if the required retur declines to 9.5 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 6 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $5.50, the growth rate declines to 6 percent, and the required return remains 13 percent O tone

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