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An analyst is applying the dividend growth model. If she expects the market rate of return to increase on all equity securities in the market,
An analyst is applying the dividend growth model. If she expects the market rate of return to increase on all equity securities in the market, then she should also
expect:
Multiple Choice
an increase in all stock values
all stock values to remain constant
a decrease in all stock values.
dividendpaying stocks to maintain a constant price while nondividend paying stocks decrease in value.
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