Which of the Following Changes Will Make the Value of a Stock

question 100

Multiple Choice

Which of the following changes will make the value of a stock go up,other things being held constant?

• A) The required return decreases.
• B) The required return increases.
• C) In general, investors become more risk averse.
• D) The growth rate of dividends decreases.

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Definitions:

Marginal Physical Product

The change in output resulting from employing one more unit of a particular input, all else being constant.

Productivity

The measure of the efficiency of production, often evaluated as the ratio of output to inputs in the production process.

Complementary Resources

Natural or manufactured materials that work together with another resource in production to create a product or service.

Productivity

A measure of the efficiency of production, often expressed as the ratio of output to input in the production process.