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Omicron Inc operates in the environmental sector. Its operations are financed only by equity and its price per share is currently $80. The firm expects

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Omicron Inc operates in the environmental sector. Its operations are financed only by equity and its price per share is currently $80. The firm expects earnings per share of $12 in the coming year, and plans to pay a dividend of $8 per share. The dividends of this company are expected to grow at a rate of g = 3% in the foreseeable future. Suppose that Omicron has a new investment opportunity that is expected to have a return of 10%. In order to undertake this project, the company would like to reduce its dividend pay-out rate to 25%. According to the dividend discount model of valuation, if it undertook this investment, Omicron's new price per share would be and Omicron undertake this investment. a) $80.00; may or may not Ob) $41.38; should not OC) $54.55; should not d) $65.67; should e) $37.83; should not

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