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Assume an investor uses the constant-growth DVM to value a stock. Listed below are various situations that could affect the computed value of a stock.
Assume an investor uses the constant-growth DVM to value a stock. Listed below are various situations that could affect the computed value of a stock. Look at each one of these individually and indicate whether it would cause the computed value of a stock to go up, down, or stay the same.
Dividend payout ratio goes up
Stock's beta rises
T-bill rate falls
Net Profit margin goes up
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