Question: Consider a firm that had been priced using a 9 percent growth rate and an 1 1 percent required return. The firm recnely paid a

Consider a firm that had been priced using a 9 percent growth rate and an 11 percent required return. The firm recnely paid a $1.40 dividend. The firm just announce that because of a new joint venture, it will likely grow at 9.5 percent rate.

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