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Question 18 3 pts Shares of stock in LynchPin Connectors currently sell for $57.20 each. It is announced that future cash flows of LynchPin are
Question 18 3 pts Shares of stock in LynchPin Connectors currently sell for $57.20 each. It is announced that future cash flows of LynchPin are riskier than anticipated (required return increases), and expected dividend growth rates are lower than anticipated. Assuming the stock is priced correctly using the constant-growth dividend discount model, what will happen to stock price? Stock price will not change O Stock price will decrease Stock price will increase
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