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QUESTIONS The last annual dividend of Comptron Inc was of 54 Its stock betais 1 and its dividend is expected grow at a constant annual

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QUESTIONS The last annual dividend of Comptron Inc was of 54 Its stock betais 1 and its dividend is expected grow at a constant annual rate of D. The risk free rate and market risk premium are 2.54 and 6%, respectively. The new CEO wants to launch new initiatives for growth In decussing the plans with the CFO, the new initiatives bol down to an increased growth rate of dividend to 54, but at the cost of increasing beta to 14 Should the initiatives be undertakert? O A Yes-new stock price should move to $6740, an increase over its current price OB. Yes now stock price should move to $71.19. an increase over its current price OC. No new stock price should move to $67 49, a decrease from its current price D.No-new stock price should move to $71 19, a decrease from its current price E. None of the above

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