Assume that an analyst is using the constant dividend growth model to value a stock. Which of the following scenarios would be certain to cause her to decrease her estimate of the stock's value (assuming, of course, that all other factors are held constant)?

Question 10 options:

She believes the company has become riskier, and therefore increases her required rate of return for the stock

She increases her estimate of the company's next year's dividend

She increase her estimate of the expected annual rate of growth in the company's dividends

She decreases her required rate of return for the stock

None of the above would cause her to decrease her estimate of the stock's value