Consider a Firm That Had Been Priced Using a 6

question 31

Multiple Choice

Consider a firm that had been priced using a 6 percent growth rate and a 9 percent required rate. The firm recently paid a $0.50 dividend. The firm has just announced that because of a new joint venture, it will likely grow at an 8 percent rate. How much should the stock price change (in dollars and percentage) ?

• A) $33.33, 67 percent
• B) $33.33, 198 percent
• C) $36.33, 67 percent
• D) $36.33, 206 percent

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Definitions:

Revolutionary Heritage

The cultural, political, and historical legacy left by a revolution, particularly the American Revolution.

Preamble

An introductory statement in a document that explains the document's purpose and underlying philosophy.

Black Abolitionists

African American activists who campaigned against the enslavement and oppression of black people.

American Anti-Slavery Society

Founded in 1833, the organization that sought an immediate end to slavery and the establishment of equality for black Americans. It split in 1840 after disputes about the role of women within the organization and other issues.