Changes in growth and stock valuation consider a firm that


Changes in Growth and Stock Valuation Consider a firm that had been priced using a 6 percent growth rate and a 9 percent required rate. The firm recently paid a $.80 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 7 percent rate. How much should the stock price change (in dollars and percentage)?

$14.53, 34%

$9.73, 440%

$14.53, 51%

$9.73, 23%

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Financial Management: Changes in growth and stock valuation consider a firm that
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