Sensitivity and scenario analysis

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1. One board member wants to make sure that a complete risk analysis, including sensitivity and scenario analysis is performed before the proposal is sent to the board. What management information is provided by the sensitivity analysis?

2. Common stock valuel—Variable growth   Lawrence? Industries' most recent annual dividend was ?$2.41 per share ?(D0equals=$ 2.41), and the? firm's required return is 16?%. Find the market value of? Lawrence's shares when dividends are expected to grow at 20?% annually for 3? years, followed by a 44?% constant annual growth rate in years 4 to infinity. The market value of? Lawrence's shares is (round to nearest cent)

Reference no: EM131890869

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