Changes in growth and stock valuation

Assignment Help Financial Management

Reference no: EM131044203

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 $.70 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 8 percent rate. How much should the stock price change (in dollars and percentage)?

$50.87, 206%

$46.67, 62%

$50.87, 67%

$46.67, 162%

Reference no: EM131044203

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