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Summit Systems has an equity cost of capital of 10.5%, will pay a dividend of $1.25 in one year, and its dividends had been expected

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Summit Systems has an equity cost of capital of 10.5%, will pay a dividend of $1.25 in one year, and its dividends had been expected to grow by 5.5% per year. You read in the paper that Summit Systems has revised its growth prospects and now expect its d ends to grow at a rate o 25% pe er re er 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 likely to get? Why

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