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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

  1. 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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