Business, 18.10.2021 22:20 tdyson3p6xvtu

5.GMwill earn $120,000 a year in perpetuity if it pays out all its earnings as dividends (that is, no new investments). However, the firm plans to invest 25% of its earnings in projects that earn 13% a year. Given a discount rate of 12%, what is the change in the stock price under the new investment policy

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5.GMwill earn $120,000 a year in perpetuity if it pays out all its earnings as dividends (that is, n...

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