Determine the effects of the higher required rates of return

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Suppose your boss regards Swink as being quite risky and believes that the required rate of return should be higher than the 12 percent originally specified. Rework the problem under the conditions given in part (a), except change the required rate of return to (1) 13 percent, (2) 15 percent, and (3) 20 percent to determine the effects of the higher required rates of return on Swink's stock price.

Reference no: EM13865048

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