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

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eBook Problem 11-01 X The dividend-growth model may be used to valve a stock: V D. (1+9) kus Round your answers to the nearest cent. a. What is the value of a stock if: Do - $2.70 K-15% 0-9% $ b. What is the value of this stock if the dividend is increased to $4.00 and the other variables remain constant? $ c. What is the value of this stock if the required retur declines to 12.5 percent and the other variables remain cittant $ 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 $3.30, the growth rate declines to 6 percent, and the required returteman 15 perten 5 RO Book Problem 11-01 The dividend growth model may be used to value a stock V= Do(1+) k- Round your answers to the nearest cent. a. What is the value of a stock if: Do - $2.70 K= 15% 0996 5 b. What is the value of this stock if the dividend is increased to $4.00 and the other variables remain constant? $ c. What is the value of this stock if the required return dedines to 12.5 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? 5 e. What is the value of this stock if the dividend is increased to 13:30, the growth rate declines to 6 percent, and the required return remains 15 percent? 5

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