Consider a firm that had been priced using a 12.5 percent growth rate and a 14.5 percent required return. The firm recently paid a $1.65 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 13.0 percent rate.
How much should the stock price change (in dollars and percentage)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Change in stock price $
Change in stock percent %