Changes in growth and stock valuation
Course:- Financial Management
Reference No.:- EM13891893

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Changes in Growth and Stock Valuation Consider a firm that had been priced using a 14.00 percent growth rate and a 18.00 percent required rate. The firm recently paid a $2.60 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)?

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