Question: Problem 11-01 The dividend-growth model may be used to value a stock: Round your answers to the nearest cent. a.What is the value of a
Problem 11-01 The dividend-growth model may be used to value a stock: Round your answers to the nearest cent. a.What is the value of a stock if: D0 = $4.80 k = 8% g = 5% $ b.What is the value of this stock if the dividend is increased to $6.70 and the other variables remain constant? $ c.What is the value of this stock if the required return declines to 6.5 percent and the other variables remain constant? $ d.What is the value of this stock if the growth rate declines to 3 percent and the other variables remain constant? $ e.What is the value of this stock if the dividend is increased to $5.60, the growth rate declines to 3 percent, and the required return remains 8 percent? $
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