Using the Constant Growth Model, an Increase in the Required

question 14

Multiple Choice

Using the constant growth model, an increase in the required rate of return from 17 to 20% combined with an increase in the growth rate from 8 to 11% would cause the price to

• A) Rise more than 3%
• B) Rise less than 3%.
• C) Remain constant.
• D) Fall more than 3%.
• E) Fall less than 3%.

---

Definitions:

Water

A clear, colorless, odorless, and tasteless liquid essential for most forms of life and most industrial processes.

Anorexia Nervosa

An eating disorder in which people starve themselves because they fear that if they lose control of eating they will become grossly overweight.

Menstruation Cessation

The stoppage of the monthly menstrual cycle, commonly known as menopause.

Food Allergens

Substances in foods (like peanuts, shellfish, and eggs) that can trigger allergic reactions in sensitive individuals.