5, In the corporate valuation model, other hings held constant, if the WACC decreases, the stock price increases 6, In the constant growth model, if the dividend growth rate increases and the required rate of return decreases, then, the stock price decreases. 7, Suppose that a firm is expected to have more growth opportunities in the future and so the dividend growth rate is expected to increase. Also, at the same time, the firm faces more risk from future opportunities. Based on the constant growth model, the firm's stock price can either increase or decrease depending on the impact of two factors