When Using the Constant-Growth Dividend Valuation Model, Which of the Following

question 93

Multiple Choice

When using the constant-growth dividend valuation model, which of the following will lower the value of the stock?

• A) An increase in the required rate of return.
• B) A decrease in the required rate of return.
• C) An increase in the dividend payout ratio.
• D) An increase in the growth rate of the dividends.