Widji Outfitters is expected to pay a dividend (D1)of $1.00 next year with an expected constant growth in dividends of 5%.The required rate of return is 11%.
a)Calculate the present value of this stock?
b)What will be the new price of this stock if the discount rate rises to 12%
c)What will be the new price of this stock if the discount rate falls to 10%?
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