According to the dividend growth model, which one of the following will increase the current value of a share of common stock?

Select one:

a. Decrease in the expected dividend for next year

b. Increase in the required return

c. Increase in the market rate of return

d. Decrease in the dividend growth rate

e. Increase in the capital gains yield

Which of the following affect the current price of a stock when using the constant growth formula? I. dividend growth rate II. required return III. dividend paid last year IV. expected dividend next year

Select one:

a. I, II, and IV only

b. I and III only

c. II and IV only

d. I, II, III, and IV

e. II, III, and IV only