Question: The dividend-growth model may be used to value a stock: D. (1+g) Va k-9 Round your answers to the nearest cent. a. What is the

 The dividend-growth model may be used to value a stock: D.

The dividend-growth model may be used to value a stock: D. (1+g) Va k-9 Round your answers to the nearest cent. a. What is the value of a stock if: Do = $2.80 k = 8% 9 = 5% b. What is the value of this stock if the dividend is increased to $4.20 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 4 percent and the other variables remain constant? $ e. What is the value of this stock if the dividend is increased to $3.40, the growth rate declines to 4 percent, and the required return remains 8 percent

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