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  3. friedman steel company will pay a dividend of $710

Friedman Steel Company will pay a dividend of $710 per share in the next 12...

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Accounting

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Friedman Steel Company will pay a dividend of $710 per share in the next 12 months (D2). The required rate of return ( Ke) is 18 percent and the constant growth rate is 8 percent. (Each question is independent of the others. Round the final answers to 2 decimal places.) a. Compute P Price of common share b. Assume Ke, the required rate of return, goes up to 21 percent, what will be the new value of Po ? New price of common share 5 Assume the growth rate (g) goes up to 11 percent, what will be the new value of P ? lew price of common share $ Assume D1 is $7.90, what will be the new value of P ? ew price of common share

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