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

---

Definitions:

Comminuted

Describing a fracture in which the bone is broken into several pieces, often requiring surgery to repair.

Depressed

Depressed refers to a state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Salter-Harris Type

A classification system used to describe fractures involving the growth plate (physis) in children.

Physeal Fracture

A break in the growth plate of a bone, typically seen in children and adolescents.