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Sun Tans pays a constant annual dividend. Over the past year, the required return on this firm's stock increased. Given this information you know that
Sun Tans pays a constant annual dividend. Over the past year, the required return on this firm's stock increased. Given this information you know that over the past year:
the capital gains rate had to decrease. |
the stock price increased and the capital gains yield decreased. |
the capital gains rate had to increase. |
the stock price had to decrease. |
the stock price had to increase. |
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