Question: Problem 11-01 The dividend-growth model may be used to value a stock: D. (1+9) V= k-9 Round your answers to the nearest cent. a. What

Problem 11-01 The dividend-growth model may be used to value a stock: D. (1+9) V= k-9 Round your answers to the nearest cent. a. What is the value of a stock if: Do = $3.80 k = 9% g = 5% $ b. What is the value of this stock if the dividend is increased to $5.40 and the other variables remain constant? $ c. What is the value of this stock if the required return declines to 7.5 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 4 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $4.50, the growth rate declines to 4 percent, and the required return remains 9 percent? $
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