Required rate of return

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If Corporation XYZ will pay a dividend of $2.00 per share in the next 12 months (D1) and the required rate of return (Ke) is 8% and the constant growth rate (g) is 3%, find (1) P0; (2) the new value of P0 if Ke, the required rate of return, goes up to 10%; (3) the new value of P0 if the growth rate, g, goes up to 5%.

Reference no: EM131941618

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