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Summit Systems has an ecuity cost of capital of 12.0%, wil pay a dividend of $1.75 in one year, and its dividends had been expected

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Summit Systems has an ecuity cost of capital of 12.0%, wil pay a dividend of $1.75 in one year, and its dividends had been expected to grow by 6.5% per yoar: You read in the paper that 5 ummit Systems has revised its growth prospects and now expects its dividends to grow at a rate of 3.0% per year forever. a. What is the drop in value of a share of Summit Systems stock based on this information? b. If you tried to sell your Summit Systems stock after reading this news, what price would you be thely to get? Wiy? a. What is the drop in value of a share of Summat Systems stock based on this information? The drop in value of a share of Summit Syatems stock is $ (Round to the nearest cont)

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