IBM is currently valued at $106.34 and its current dividend yield is 3% and has a constant

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IBM is currently valued at $106.34 and its current dividend yield is 3% and has a constant growth rate in dividends. Due to challenging business environment, it is thinking of reducing its growth rate in dividend starting next quarter. If everything else including its cost of equity remains same, based on Gordon Growth Model, which one of the following is the most probable scenario?

IBM's stock price will remain same

Difficult to comment from the given information

IBM's stock price will increase

IBM's stock price will decrease

Posted Date: May 24, 2024 07:10 AM

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IBM is currently valued at $106.34 and its current dividend yield is 3% and has a constant

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