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Management action and stock value REH Corporation's most recent dividend was 52 87 per share, its expected annual rate of dividend prowth la 5% and

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Management action and stock value REH Corporation's most recent dividend was 52 87 per share, its expected annual rate of dividend prowth la 5% and the requin 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 9% and lower the required return to 11% c. Eliminate an unprofitable product line, which will increase the dividend growth rate to 6% and raise the required return to 17% d. Morge with another firm, which will reduce the growth rate to 2% 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 17% GW the fim does nothing that will leave the key financial variables unchanged the value of the firm will be (Round to the nearest cant int dividend was 52 87 per share its expected annual rate of dividend growh ls 5%, and the required return is now 15% A variety of proposals are being comidered by management to each of the following proposed action to 9% and lower the required return to 11% end growth rate to 6% and raise the required retum to 17% and raise the required return to 16% muisition should increase the dividend growth rate to 8% and increase the required return to 17% C nchanged the value of the firm will be $ (Round to the nearest cant)

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