3.3.3 Stock price, no dividend growth Dividend (Div) Required relurn (r) Lel's price a slock with a tixed dividend that will never change. This model is appropriate for preferred stock A. Dividend is $1.00 per year. Investors require a 10% return. B. Dividend is $1.00 per year. Fears of inflation drive a market correction. We now require 12% return. C. Dividend is $1.00 per year. As interest rates decline and investors become more confident they are willing to accept an 8% return