Multiple Choice
New information that might lead to a decrease in a stock's price might be
A) an expected decrease in the level of future dividends.
B) a decrease in the required rate of return.
C) an expected increase in the dividend growth rate.
D) an expected increase in the future sales price.
Correct Answer:

Verified
Correct Answer:
Verified
Q49: In rational expectations theory,the term "optimal forecast"
Q50: Using the Gordon growth formula,if D1 is
Q51: In a one-period valuation model,a decrease in
Q52: When we describe stock prices as following
Q53: When using rational expectations,forecast errors will,on average,be
Q55: A monetary expansion _ stock prices due
Q56: Periodic payments of net earnings to shareholders
Q57: You believe that a corporation's dividends will
Q58: If a forecast is made using all
Q59: The global financial crisis lead to a