Round your answers to the nearest cent.   What is the value of a stock if: D0 = $2.10 k = 10% g = 7%   $     What is the value of this stock if the dividend is increased to $3.80 and the other variables remain constant?   $     What is the value of this stock if the required return declines to 8 percent and the other variables remain constant?   $     What is the value of this stock if the growth rate declines to 5 percent and the other variables remain constant?   $     What is the value of this stock if the dividend is increased to $3.10, the growth rate declines to 5 percent, and the required return remains 10 percent?     $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 11P
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Round your answers to the nearest cent.

 

    1. What is the value of a stock if:
      D0 = $2.10
      k = 10%
      g = 7%

 

$  

 

    1. What is the value of this stock if the dividend is increased to $3.80 and the other variables remain constant?

 

$  

 

    1. What is the value of this stock if the required return declines to 8 percent and the other variables remain constant?

 

$  

 

    1. What is the value of this stock if the growth rate declines to 5 percent and the other variables remain constant?

 

$  

 

    1. What is the value of this stock if the dividend is increased to $3.10, the growth rate declines to 5 percent, and the required return remains 10 percent?

 

 

$  

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