How much should the stock price change

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Consider a firm that had been priced using a 10 percent growth rate and a 12 percent required return. The firm recently paid a $1.20 dividend. The firm just announced that because of a new joint venture, it will likely grow at a 10.5 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: EM131182499

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