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  3. you are given the following data: ______________

You are given the following data: ___________________________________ Required return 10% Present...

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Finance

  1. You are given the following data:

___________________________________

Required return 10%

Present dividend $1

Growth rate 5%

___________________________________

a.) What is the value of the stock?

b.) If the growth rate increases to 6 percent and the dividend remains $1, what is the value of the stock?

c.) If the required return declines to 9 percent and the dividend remains $1, what is the value of the stock? If the stock is selling for $20, what does that imply?

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