If a Company's Stock Price (P₀) Goes Up, and Nothing

question 93

Multiple Choice

If a company's stock price (P₀) goes up, and nothing else changes, K_e (the required rate of return) should

• A) go up.
• B) go down.
• C) remain unchanged.
• D) More information is needed for an answer.

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Definitions:

Biennial Budgets

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U.S. Interest Rates

The rate at which interest is paid by borrowers for the use of money that they borrow from lenders, specifically within the United States.

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