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In the above DCF model, if the discount rate increases from 8 % to 1 0 % , while all other assumptions remain constant, how

In the above DCF model, if the discount rate increases from

8 %

10 %,

while all other

assumptions remain constant, how much would the intrinsic value of the stock change?

Provide the percentage change in intrinsic value. What could cause the discount rate to

increase?

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