5. Dividend Discount Model (LO1, CFA4) In applying the constant growth dividend discount model, a stocks intrinsic

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5. Dividend Discount Model (LO1, CFA4) In applying the constant growth dividend discount model, a stock’s intrinsic value will do which of the following when the required rate of return is lowered?

a. Decrease

b. Increase

c. Remain unchanged

d. Decrease or increase, depending on other factors

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