New Information That Might Lead to a Decrease in a Stock's

question 54

Multiple Choice

New information that might lead to a decrease in a stock's price might be

• A)an expected decrease in the level of future dividends.
• B)a decrease in the required rate of return.
• C)an expected increase in the dividend growth rate.
• D)an expected increase in the future sales price.

---

Definitions:

CO₂

Carbon dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

UV Radiation

Ultraviolet radiation is a form of electromagnetic radiation that comes from the sun and man-made sources like tanning beds, capable of causing skin damage, including sunburn and skin cancer.

Ozone

A molecule composed of three oxygen atoms, known for its presence in the Earth's stratosphere, where it forms a layer that protects life by blocking most of the sun's harmful ultraviolet radiation.

Undecomposed Leaves

Leaves that have fallen from trees but have not yet broken down or decomposed, often accumulating on the forest floor.