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thank you Ecology Labs Inc. will pay a dividend of $6.50 per share in the next 12 months (oz). The required rate of return (x)
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Ecology Labs Inc. will pay a dividend of $6.50 per share in the next 12 months (oz). The required rate of return (x) is 20 percent and the constant growth rate is 9 percent. (Each question is Independent of the others.) a. Compute the price of Ecology Labs' common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. Assume x the required rate of return, goes up to 24 percent. What will be the new price? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) New price C. Assume the growth rate (g) goes up to 13 percent. What will be the new price? *. goes back to its original value of 20 percent. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) New price d. Assume is $750, What will be the new price? Assumer. Is at its original value of 20 percent and a goes back to its original value of 9 percent. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Now price Ecology Labs Inc. will pay a dividend of $6.50 per share in the next 12 months (oz). The required rate of return (x) is 20 percent and the constant growth rate is 9 percent. (Each question is Independent of the others.) a. Compute the price of Ecology Labs' common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price b. Assume x the required rate of return, goes up to 24 percent. What will be the new price? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) New price C. Assume the growth rate (g) goes up to 13 percent. What will be the new price? *. goes back to its original value of 20 percent. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) New price d. Assume is $750, What will be the new price? Assumer. Is at its original value of 20 percent and a goes back to its original value of 9 percent. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Now price Step by Step Solution
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