part a:

Assuming the constant growth dividend discount model (i.e. dividends expected to grow at some constant rate forever) holds, which of the following would be expected to increase a firms stock price if everything else remained constant?

Question 27 options:

Increase in dividend growth

Increase in the firms operating risk

Statements B and C

Increase in the required rate of return

part b:

Which of the followings is not true?

Common stock dividends are tax-deductible.

Stockholders elect the members of the board of directors

Common stock has no maturity.

Common stock represents ownership and thus has voting rights.