Assuming that the discount rate remains the same what will


The stock of Robotic Atlanta Inc. is trading at $ 21.55 per share. In the past, the firm has paid a constant dividend of $ 4.54 per share and it has just paid an annual dividend (i.e., D0 = 4.54 ). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 4.0 % forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? Calculate your answer to the nearest penny, do not use the $ sign in your answer.

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Risk Management: Assuming that the discount rate remains the same what will
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