Multiple Choice
Using the constant growth model,an increase in the required rate of return from 19 to 17 percent combined with an increase in the growth rate from 11 to 9 percent would cause the price to
A) Fall more than 2%
B) Fall less than 2%.
C) Remain constant.
D) Rise more than 2%.
E) Rise less than 3%.
Correct Answer:

Verified
Correct Answer:
Verified
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