Question: Problem 11-01 The dividend-growth model may be used to value a stock: V= D. (1+0) K-9 Round your answers to the nearest cent. a. What

 Problem 11-01 The dividend-growth model may be used to value a

Problem 11-01 The dividend-growth model may be used to value a stock: V= D. (1+0) K-9 Round your answers to the nearest cent. a. What is the value of a stock if: Do = $1.70 k= 12% g = 8% $ b. What is the value of this stock if the dividend is increased to $2.90 and the other variables remain constant? $ c. What is the value of this stock if the required return declines to 9 percent and the other variables remain constant? $ d. What is the value of this stock if the growth rate declines to 5 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $2.30, the growth rate declines to 5 percent, and the required return remains 12 percent? $

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