Which of the Following Will Cause an Increase in the Current

question 95

Multiple Choice

Which of the following will cause an increase in the current price of a stock? $\mathrm{P}_{\text {today }}=\frac{\mathrm{D}_{\text {today }}(1+g) }{r f+r p-g}$

• A) A decrease in the risk-free return
• B) A decrease in the current dividend
• C) A decrease in the dividend growth rate
• D) Both an increase in the risk-free return or an increase in the current dividend

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