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If the price of a stock equals the present value of expected future dividend payments, then the price of the firm's stock would be expected
If the price of a stock equals the present value of expected future dividend payments, then the price of the firm's stock would be expected to decrease when
competition increases.
firm predicts lower profits in the future.
the government intends to increase the tax collected from the firm.
All of these can cause the price to decrease.
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