Which of the following will cause the stock price to increase if you assume that the constant growth pricing model [P(0) = D(1) / (r(s) β g)] is correct:
a. Decrease in Dividends
b. Increase in the required rate of return
c. Increase in the growth rate
d. Increase in the Required Rate of Return and Decrease in dividends
Answers: 1
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Which of the following will cause the stock price to increase if you assume that the constant growth...
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