In the One-Period Valuation Model,an Increase in the Required Return

question 30

Multiple Choice

In the one-period valuation model,an increase in the required return on investments in equity

• A)increases the expected sales price of a stock.
• B)increases the current price of a stock.
• C)reduces the expected sales price of a stock.
• D)reduces the current price of a stock.

---

Definitions:

Anthocerophyta

A phylum of non-vascular plants known as hornworts, characterized by a sporophyte that resembles a horn.

Ferns

A group of non-flowering vascular plants that reproduce via spores and have neither seeds nor flowers.

Bryophyta

A division of non-vascular land plants that are known as mosses, characterized by life-cycles with a dominant gametophyte stage.

Hepaticophyta

A division of non-vascular plants commonly known as liverworts, which are close relatives of mosses and hornworts.