Ecology Labs, Inc., will pay a dividend of $6.40 per share in the next 12 months (D₁). The required rate of return (K_e) is 14 percent and the constant growth rate is 5 percent.

For parts b, c, and d in this problem all variables remain the same except the one specifically changed. Each question is independent of the others.

A.) Compute P₀.

Round your answer to 2 decimal places. Omit the "$" sign in your response.

Answer

b.) Assume K_e, the required rate of return, goes up to 18 percent; what will be the new value of P_0?

Round your answer to 2 decimal places. Omit the "$" sign in your response.

Answer

c.) Assume the growth rate (g) goes up to 9 percent; what will be the new value of P₀? K_egoes back to its original value of 14 percent.

Round your answer to 2 decimal places. Omit the "$" sign in your response.

Answer

d.)

Assume D₁ is $7.00; what will be the new value of P₀? Assume K_e is at its original value of 14 percent and g goes back to its original value of 5 percent.

Round your answer to 2 decimal places. Omit the "$" sign in your response.