Homework: Chapt. 7 - Stock Valuation Question 8, P7-21 (similar to) Part 1 of 5 HW Score: 0%, 0 of 17 points O Points: 0 of 5 Save Management action and stock value REH Corporation's most recent dividend was $2.41 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. a. Do nothing, which will leave the key financial variables unchanged. b. Invest in a new machine that will increase the dividend growth rate to 7% and lower the required return to 14%. c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 8% and raise the required return to 18%. d. Merge with another firm, which will reduce the growth rate to 3% and raise the required return to 16%. e. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to 8% and increase the required return to 18%. (... (Round to the nearest a. If the firm does nothing that will leave the key financial variables unchanged, the value of the firm will be $ cent.) Homework: Chapt. 7 - Stock Valuation Question 7, P7-20 (similar to) HW Score: 0%, 0 of 17 points O Points: 0 of 1 Save Valuation with pricelearnings multiples For the firm shown in the following table, use the data given to estimate its common stock value employing price/earnings (P/E) multiples. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Expected EPS $2.26 Pricelearnings multiple 11.5 . The value of the firm's common stock is $. (Round to the nearest cent.)