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FirstHealth Inc. is a medical equipment company, and it announces that it will pay dividends to stockholders at $3 per share in one year from

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FirstHealth Inc. is a medical equipment company, and it announces that it will pay dividends to stockholders at $3 per share in one year from today. The market expects FirstHealth's profit will grow at 6% per year, and the discount rate for valuing its stock is 8%. According to the Generalized Dividend Valuation Model (Gordon Growth Model), its stock price in the market should be $ per share today. 50 100 150 200 Refer to Case 1 above. If the expected profit growth rate of the company decreases from 6% to 3%, according to the Generalized Dividend Valuation Model (Gordon Growth Model), its stock price will increase decrease stay the same The Generalized Dividend Valuation Model dose not apply in this case

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