Question: Consider a firm that had been priced using a 10 percent growth rate and a 13 percent required rate. The firm recently paid a $2.30

Consider a firm that had been priced using a 10 percent growth rate and a 13 percent required rate. The firm recently paid a $2.30 dividend. The firm just announced that because of a new joint venture, it will likely grow at a 12 percent rate. How much should the stock price change (in dollars and percentage)?

A. $173.27,67%

B. $150.27, 58%

C. $173.27, 205%

D. $150.27, 171%

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