A Decrease in Which of the Following Will Increase the Current

question 26

Multiple Choice

A decrease in which of the following will increase the current value of a stock according to the dividend growth model?

• A) Dividend amount
• B) Number of future dividends, provided the total number of dividends is less than infinite
• C) Dividend growth rate
• D) Discount rate
• E) Both the discount rate and the dividend growth rate

---

Definitions:

Regurgitate

Regurgitate means to bring swallowed food up again to the mouth; in the context of information, it means to repeat information without understanding it fully.

Left Atrium

A chamber out of the heart's four, it takes in blood enriched with oxygen from the lungs and propels it toward the left ventricle.

Blood Flow

The continuous circulation of blood through the cardiovascular system, delivering oxygen and nutrients to tissues and organs.

Regurgitate

The act of bringing food back up into the mouth or esophagus after it has been swallowed, sometimes without re-chewing.