A firm pays a $1.50 dividend at the end of year one D. has a...
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A firm pays a $1.50 dividend at the end of year one D. has a stock price of $65 CP0) and a constant growth rate of 8 percent. a. Compute the required rate of return (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to Rate of 2 decimal places.) 10.31 return Indicate whether each of the following changes wll increase or decrease the required rate of return (Ka). (Each question is separate from the others. That is, assume only one variable changes at a time.) No actual numbers are necessary. b. If the dividend payment increases: idend yield Required rate o return c. If the expected growth rate increases: Required rate of return d. If the stock price increases: Dividend yield Required rate o return
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