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Management action and stock value REH Corporation's most recent dividend was $2.74 per shwe, tas expected and rate of dividend growth in 3%, and the

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Management action and stock value REH Corporation's most recent dividend was $2.74 per shwe, tas expected and rate of dividend growth in 3%, and the required retum is now 18%. 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 and lower the required reum to 11 c. Eliminate an unprofitable product in which will increase the dividend growth rate to 0% and raise the required folum to 17% d. Merge with another frm, which wil reduce the growth rate to and raise the required return to 17% .. Acquire a subsidiary operation from another manufacturer. The acquisition should increase the dividend growth rate to and increase the required return to 17% W the firm does nothing that will leave the key financial variables unchanged, the value of the fom will be s(Round to the nearest cent)

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