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  2. Topic
    Business
  3. Study Set
    Money Banking and Financial Markets
  4. Exam
    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
  5. Question
    Using the Gordon Growth Model,a Stock's Current Price Will Increase
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Using the Gordon Growth Model,a Stock's Current Price Will Increase

Question 35

Question 35

Multiple Choice

Using the Gordon growth model,a stock's current price will increase if


A) the dividend growth rate increases.
B) the growth rate of dividends falls.
C) the required rate of return on equity rises.
D) the expected sales price rises.

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