Consider a Firm That Had Been Priced Using a 12

question 49

Multiple Choice

Consider a firm that had been priced using a 12 percent growth rate and a 16 percent required return. The firm recently paid a $5.00 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 12.5 percent rate. How much should the stock price change (in dollars and percentage) ?

• A) $21.50; 13.72 percent
• B) $21.50; 16.14 percent
• C) $20.71; 14.79 percent
• D) $20.71; 19.93 percent

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Definitions:

Demography

The statistical study of populations, including the structure, distribution, and trends of humans within a society.

Population Dynamics

The study of short- and long-term changes in the number, individual compositions, and distributions of populations, and the biological and environmental processes influencing those changes.

Domestic Dogs

Canines that have been domesticated for thousands of years, serving various roles in human society such as companionship, work, and protection.

Environmental Justice

Ensuring that people, no matter their ethnicity, color, country of origin, or financial situation, are treated fairly and play a meaningful role in the formulation, enforcement, and carrying out of policies, laws, and regulations related to the environment.