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The dividend-growth model may be used to value a stock: V=kgD0(1+g) Round your answers to the nearest cent. a. What is the value of a
The dividend-growth model may be used to value a stock: V=kgD0(1+g) Round your answers to the nearest cent. a. What is the value of a stock if: D0=$4.50k=14%g=7% $ b. What is the value of this stock if the dividend is increased to $6.40 and the other variables remain constant? $ c. What is the value of this stock if the required return declines to 10.5 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $5.00, the growth rate declines to 4 percent, and the required return remains 14 percent? $
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