Question: Consider a firm that had been priced using a 9.5 percent growth rate and an 11.5 percent required return. The firm recently paid a $1.75

Consider a firm that had been priced using a 9.5 percent

Consider a firm that had been priced using a 9.5 percent growth rate and an 11.5 percent required return. The firm recently paid a $1.75 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 10.0 percent rate. How much should the stock price change (in and percentage)? (Do not round intermediate calculations. Round dollars your final answer to 2 decimal places.) Change in stock price $ Change in stock percent %

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