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Masteriza [31]
3 years ago
12

If the required rate of return used in the dividend growth model is increased, then: select one:

Business
1 answer:
iren [92.7K]3 years ago
4 0

Option C is correct.

The required rate of return and Value of a stock shares inverse relationship. That is, if the required return increases the value or the price of the stock will decrease and vice versa. Therefore, as a result of increase in the required return, the value of the stock will decrease.

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