You are given the following data:
required return 10%
present dividend $1
growth rate 5%
a. what is the value of the stock?
b. if the growth rate increases to 6% and the dividend remains $1, what is the value of the stock?
c. if the required return declines to 9% and the dividend remains $1, what is the value of the stock? if the stock is selling foor $20, what does that imply?