How much should the stock price change

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Reference no: EM131989802

Consider a firm that had been priced using an 8 percent growth rate and a 10 percent required return. The firm recently paid a $1.65 dividend. The firm just announced that because of a new joint venture, it will likely grow at an 8.5 percent rate.

How much should the stock price change (in dollars and percentage)? (Round your answers to 2 decimal places.)

Change in stock price=

Change in stock percent=

Reference no: EM131989802

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