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REH corporation's most recent dividend is $3 per share and the expected annual rate of dividend growth is 5% indefinitely. If the required rate of

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REH corporation's most recent dividend is $3 per share and the expected annual rate of dividend growth is 5% indefinitely. If the required rate of return on the company is now 15% what would the impact of the following have on the company's share price: a) The company continues business as usual, and all variables above remained unchanged. b) Invest in a new machine that would increase the dividend growth rate to 6% and lower the required rate of return to 14% Eliminate an unprofitable product line which will increase the dividend growth rate to 7% and increase the required rate of return to 17%. c)

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