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Friedman Steel Company will pay a dividend of $2.50 per share in the next 12 months (D1). The required rate of return (Ke) is 19

Friedman Steel Company will pay a dividend of $2.50 per share in the next 12 months (D1). The required rate of return (Ke) is 19 percent and the constant growth rate is 8 percent. (Each question is independent of the others. Round the final answers to 2 decimal places.) a. Compute P0. Price of common share $ b. Assume Ke, the required rate of return, goes up to 23 percent, what will be the new value of P0? New price of common share $ c. Assume the growth rate (g) goes up to 10 percent, what will be the new value of P0? New price of common share $ d. Assume D1 is $3.00, what will be the new value of P0? New price of common share $

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