$20.$ A company's dividend in one year is $$1\mathrm{.}00$ and this is expected to increase forever at a constans rate of $2\%.$ If the required return on this stock increases from $10\%$ to $12\%$ by how much will the

ECON $210-4$

stock price change? a$.$ Increase by $20\%$ b$.$ Decrease by $20\%$ c$.$ Increase by $16\mathrm{.}67\%$ d$.$ Decrease by $16\mathrm{.}67\%$