How much should stock price change

Assignment Help Financial Management

Reference no: EM131900653

1. Consider a firm that had been priced using a 14.00 percent growth rate and a 19.00 percent required rate. The firm recently paid a $2.70 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 16.00 percent rate. How much should the stock price change (in dollars and percentage)?

2. A 3.875 percent TIPS has an original reference CPI of 179.9. If the current CPI is 206.2, what is the par value and current interest payment of the TIPS? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131900653

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