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Friedman Steel Company will pay a dividend of $6.40 per share in the next 12 months (D). The required rate of return (K)is 14 percent
Friedman Steel Company will pay a dividend of $6.40 per share in the next 12 months (D). The required rate of return (K)is 14 percent and the constant growth rate is 5 percent. (Each question is independent of the others. Round the final answers to 2 decimal places.) a. Compute pe Price of common share $ b. Assume ke the required rate of return, goes up to 18 percent, what will be the new value of Po? New price of common share $ C. Assume the growth rate (9) goes up to 9 percent, what will be the new value of Pe? New price of common share $ d. Assume D, is $7.00, what will be the new value of Po? New price of common share $
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