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 %