Which of the Following, Holding All Other Variables Constant, Will

question 10

Multiple Choice

Which of the following, holding all other variables constant, will cause an INCREASE in a constant growth stock's current value?

• A)An increase in the growth rate
• B)An increase in the market return (k)
• C)An increase in the number years the stock is held
• D)Both a & b
• E)All of the above

---

Definitions:

Purchasing Cooperative

An organization owned and operated by a group of individuals for their mutual benefit, specifically to increase their bargaining power and obtain goods or services at better prices.

Angel Investors

Wealthy individuals who provide capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Succession Problem

The succession problem is the issue of who will run the business when the current head leaves.

Family Businesses

Family businesses are owned and controlled by family members.