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Ghatal Corporation's most recent dividend was Rs 3 per share, its expected annual rate of dividend growth is 5%, and the required return is now

Ghatal Corporation's most recent dividend was Rs 3 per share, its expected annual rate of dividend growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine the impact on share price for each of the following proposed actions, and indicate the best alternative. (i) Do nothing, which will leave the key financial variables unchanged. (ii) Invest in a new machine that will increase the dividend growth rate to 6%and lower the required return to 14%. (iii) Eliminate an unprofitable product line, which will increase the dividend growth rate to 7% and raise the required return to 17%. (iv) Merge with another firm, which will reduce the growth rate to 4% and raise the required return to 16% (v) List out the factors affecting the price of common stock

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