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Identify the relation between a stocks price and the factors that determine the price, based on the constant-growth dividend valuation model: For example, the relationship
- Identify the relation between a stocks price and the factors that determine the price, based on the constant-growth dividend valuation model:
For example, the relationship is positive if an increase in the factor results in an increase in the share price.
Relationship with share price | |
Factor | Positive or negative |
Current Dividend |
|
Growth rate of dividends |
|
Required Rate or Return |
|
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