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Suppose that the expected dividends of the stocks in a broad market index equaled $240 billion when the discount rate was 8% and the expected

Suppose that the expected dividends of the stocks in a broad market index equaled $240 billion when the discount rate was 8% and the expected growth rate of the dividends indefinitely thereafter equaled 6%. Using the constant-growth formula for valuation, if the discount rate increases to 9%. the value of the market will change by about

A -25%

B -10%

C -33%

D -20%

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