Problem 11-01

The dividend-growth model may be used to value a stock:

"? Cengage Digital Learning MindTap - Cengage Lea X *Homework Help - Q&A fror + v X O A https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=59440722375013485425961657319&eISBN=9781337403047&nbld=1826168&snapshotic [!!] > CENGAGE |MINDTAP Q Search this course ? Ch 11: End-of-Chapter Problems - Stock Valuation X eBook Problem 11-01 The dividend-growth model may be used to value a stock: A-Z V = Do (1 + g) k - g Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.40 k = 11% g = 6% b. What is the value of this stock if the dividend is increased to $4.40 and the other variables remain constant? ? $ c. What is the value of this stock if the required return declines to 7.5 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 3 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $4.30, the growth rate declines to 3 percent, and the required return remains 11 percent? $ O Type here to search e L O 8:57 PM 9/13/2020