Multiple Choice
A company's dividend in one year is $1.00 and this is expected to increase at a constant rate of 2%. If the required return on this stock increases from 10% to 12$ by how much will the stock price change?
A) Increase by 20%
B) Decrease by 20%
C) Increase by 16.67%
D) Decrease by 16.67%
Correct Answer:
Verified
Correct Answer:
Verified
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