How much should the stock price change

Reference no: EM133616090

Problem: Changes in Growth and Stock Valuation Consider a firm that had been priced using a 9 percent growth rate and a 12 percent required rate. The firm recently paid a $1.70 dividend. The firm has just announced that because of a new joint venture, it will likely grow at 11 percent rate. How much should the stock price change (in dollars and percentage)?

Reference no: EM133616090

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