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Problem 10-29 (Algo) Common stock value under different market conditions [LO10-5] Ecology Labs incorporated will pay a dividend of $3.75 per share in the next
Problem 10-29 (Algo) Common stock value under different market conditions [LO10-5] Ecology Labs incorporated will pay a dividend of $3.75 per share in the next 12 months (D1). The required rate of return (Ke) is 16 percent and the constant growth rate is 6 percent Note: Each question is independent of the others. a. Compute the price of Ecology Labs' common stock. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Assume Ke, the required rate of return, goes up to 19 percent. What will be the new price? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
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