4. Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the required rate of return of the stock decreases, the price of the stock will:

increase

decrease

remain unchanged

either increase or decrease depending on the dividend paid in year 0.

either increase or decrease depending on the stock's required rate of return.

Assume that a constant growth stock is currently selling at its equilibrium price of $52.50 per share. All else constant, if the required rate of return of the stock decreases, the price of the stock will:

	increase
	decrease
	remain unchanged
	either increase or decrease depending on the dividend paid in year 0.
	either increase or decrease depending on the stock's required rate of return.