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Problem 11-01 The dividend-growth model may be used to value a stock: D.(1 +9) V= k-9 Round your answers to the nearest cent. a. What
Problem 11-01 The dividend-growth model may be used to value a stock: D.(1 +9) V= k-9 Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.00 k = 12% 9 = 7% $ b. What is the value of this stock if the dividend is increased to $4.60 and the other variables remain constant? $ C. What is the value of this stock if the required return declines to 11 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $4.40, the growth rate declines to 4 percent, and the required return remains 12 percent? $
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