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Question

The value of any stock is influenced by both the dividend stream and the expected capital

gains.

 True

 False



Which of the following would increase the expected current value of a stock valued using the constant growth model of stock valuation?


An increase in the expected dividend growth rate

A decrease in the expected dividend growth rate

A decrease in the required rate of return


Answers (a) and (c)



Answers (b) and (c)

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