Based on the Dividend Growth Model, the Price of a Stock

question 14

Multiple Choice

Based on the dividend growth model, the price of a stock will remain constant if the dividend is cut, provided that the:

• A) required return on the stock is proportionately increased.
• B) growth rate in dividends remains constant.
• C) reduction is offset by an increase in the growth rate.
• D)growth rate is decreased by the percent decrease in the dividend.

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A condition that limits a person's physical capacity or mobility.

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The state of having limited or no sexual experience or activity.

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