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Changes in Growth and Stock Valuation Consider a firm that had been priced using a...

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Accounting

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 $2.80 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)? Multiple Choice $70.00, 100.00% $70.00, 1.00% $82.60, 1.04% $82.60, 104.00%

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