Problem 10 Intro LightWorks Inc. has a cost of equity of 12%. The firm will pay an annual dividend of $3.8 in one year and its dividends had been expected to grow by 6% per year thereafter. You just heard on the news that LightWorks has changed its growth forecasts and now expects its dividend to grow by 4% per year forever after the first year. Part 1 BAttempt 2/10 for 10 pts. What is the change in the intrinsic value of LightWorks (in $)? Choose the right sign. 1+ decimals Submit Part 2 BAttempt 1/10 for 10 pts. If you tried to sell LightWorks stock immediately after the news broadcast, what price would you most probably get? 1+ decimals Submit