How much should stock price change

Assignment Help Financial Management

Reference no: EM131517715

Consider a firm that had been priced using an 8.5 percent growth rate and a 10.5 percent required return. The firm recently paid a $2.30 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 9.0 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 %

Reference no: EM131517715

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