The most resent financial data for the company discolor the following,

Devidend per share sh 3

Expected annual dividend growth rate 6percent

Current required rate 15%

The company is considering a viriaty of proposals in order to direct the firm activities. The following alternative had been suggested

Invest in venture that will increase the devidend growth rate to 7%and lower the required rate to 14%

Eliminate unprofitable product line , the action will increase the devidend growth rate to 18% and raise the required rate of return to 17%

Acquire a subsidiary operation from another company. This will increase the dividend growth rate to 9% and requireed rate of return ton18%

Required

For each of the proposed action determine the resulting impact price and recommend the best alternative