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You are given the following data: 1. The required return on the market is 8%. 2. Beta is 1.3. 3. The risk-free rate is 5%.
You are given the following data: 1. The required return on the market is 8%. 2. Beta is 1.3. 3. The risk-free rate is 5%. 4. The expected growth rate for the firm is 4%. 5. The last dividend paid was $0.80 per share. Now assume the following changes occur: 1. The inflation premium (IP) drops by 1%. 2. An increased degree of risk aversion causes the required return on the market to go to 10% after adjusting for the changed inflation premium. 3. The expected growth rate increases to 6%. 4. Beta rises to 1.5. Based on the above-given information. What will be the change (increase or decrease) as a dollar amount in price per share, assuming the stock was in equilibrium before the changes? The stock price will by
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