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Suppose that in 2022 the expected dividends of the stocks in a broad market index equaled $500 million when the discount rate is 6% and

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Suppose that in 2022 the expected dividends of the stocks in a broad market index equaled $500 million when the discount rate is 6% and the expected growth rate of the dividends is 4%. Using the constant- growth formula for valuation, if interest rates increase to 8%, the value of the market will change by 45% . -35% OB . -50% Oc -60% go

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