Using the Constant Growth Model, an Increase in the Required

Multiple Choice

Using the constant growth model, an increase in the required rate of return from 14 to 18% combined with an increase in the growth rate from 8 to 12% would cause the price to

A) Fall more than 4%
B) Fall less than 4%.
C) Rise more than 4%
D) Rise less than 4%.
E) Remain constant.