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Steady State Electronics current stock price is $57.14. Suppose that the firm wins a major contract for its revolutionary computer chip. The very profitable contract
Steady State Electronics current stock price is $57.14. Suppose that the firm wins a major contract for its revolutionary computer chip. The very profitable contract will enable it to increase the growth rate of dividends from 5% to 6% without reducing the current dividend from the projected value of $4.00 per share. What will happen to the stock price? What will happen to future expected rates of return on the stock? Explain
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