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Ecology Labs Incorporated will pay a dividend of $7.10 per share in the next 12 months (D1). The required rate of return ( Ke) is

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Ecology Labs Incorporated will pay a dividend of $7.10 per share in the next 12 months (D1). The required rate of return ( Ke) is 18 percent and the constant growth rate is 8 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 2 decimal places. b. Assume ke, the required rate of return, goes up to 21 percent. What will be the new price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Assume the growth rate (g) goes up to 11 percent. What will be the new price? e goes back to its original value of 18 percent. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. d. Assume D1 is $7.90. What will be the new price? Assume Ke is at its original value of 18 percent and g goes back to its original valut of 8 nerrent

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