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Ecology Labs Incorporated will pay a dividend of $ 7 . 5 0 per share in the next 1 2 months ( D 1 )

Ecology Labs Incorporated will pay a dividend of $7.50 per share in the next 12 months (D1)
(
D
1
)
. The required rate of return (Ke)
(
K
e
)
is 20 percent and the constant growth rate is 9 percent.
Note: Each question is independent of the others.
Compute the price of Ecology Labs' common stock.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume Ke
K
e
, the required rate of return, goes up to 24 percent. What will be the new price?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume the growth rate (g) goes up to 13 percent. What will be the new price? Ke
K
e
goes back to its original value of 20 percent.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume D1
D
1
is $9.00. What will be the new price? Assume Ke
K
e
is at its original value of 20 percent and g goes back to its original value of 9 percent.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

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