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Ecology Labs Incorporated will pay a dividend of $ 7 . 1 0 per share in the next 1 2 months ( D 1 )
Ecology Labs Incorporated will pay a dividend of $ per share in the next months The required rate of return is percent and the constant growth rate is percent.
Note: Each question is independent of the others.
a Compute the price of Ecology Labs' common stock.
Note: Do not round intermediate calculations. Round your answer to decimal places.
Price
b Assume the required rate of return, goes up to percent. What will be the new price?
Note: Do not round intermediate calculations. Round your answer to decimal places.
New price
c Assume the growth rate goes up to percent. What will be the new price? goes back to its original value of percent. Note: Do not round intermediate calculations. Round your answer to decimal places.
New price
d Assume is $ What till be the new price? Assume is at its original value of percent and goes back to its origina value of percent.
Note: Do not round intermediate calculations. Round your answer to decimal places.
New price
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