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Please show all work. The stock of Gerlunice Company has a rate of return equal to 15.5 percent. a. If the dividend expected during the
Please show all work. The stock of Gerlunice Company has a rate of return equal to 15.5 percent. a. If the dividend expected during the coming year, Di, is $2.25, and if g remains constant at 5 percent, at what price should Gerlunice's stock sell? b. Suppose that the Federal Reserve increases the money supply, causing the risk-free rate to drop. The return expected for investing in Gerlunice will fall to 13.5 percent. How should this change affect the price of the stock
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