Which One of the Following Will Increase the Current Value

question 41

Multiple Choice

Which one of the following will increase the current value of a stock?

• A)Decrease in the dividend growth rate
• B)Increase in the required return
• C)Increase in the market rate of return
• D)Decrease in the expected dividend for next year
• E)Increase in the capital gains yield

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Definitions:

Probability

An indicator of how probable an event is, represented numerically between 0 and 1.

Nonrandom Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Sampling Error

Sampling error is the discrepancy between a sample statistic and its corresponding population parameter, caused by selecting a sample rather than conducting a census.

Mean Income

The average amount of income received over a specific period of time, calculated by dividing the total income by the number of recipients.