Consider A Firm That Had Been Priced Using An 11 5 Percent Growth Rate And A 13

Consider a firm that had been priced using an 11.5 percent growth rate and a 13.5 percent required return. The firm recently paid a $2.40 dividend. The firm has just announced that because of a new joint venture, it will likely grow at a 12.0 percent rate.

How much should the stock price change (in dollars and percentage)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

    Change in stock price$         Change in stock percent %  

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