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If Dunkirk Music Inc unexpectedly reduces its common stock cash dividend permanently and by a large amount, Dunkirk Music Inc's common stock price Multiple Choice

If Dunkirk Music Inc unexpectedly reduces its common stock cash dividend permanently and by a large amount, Dunkirk Music Inc's common stock price

Multiple Choice

  • should decline given discounted cash flow analysis

  • Should rise given increase in free cash flows and the dividend discount model

  • Should remain constant

  • should increase given the Gordon growth model and the impact to the plow-back

  • none of the choices is correct

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