Question
Suppose the management of the ABC corporation undertakes actions that increase the firm's cash so that the current dividend can increase from $2.00 to $2.50
Suppose the management of the ABC corporation undertakes actions that increase the firm's cash so that the current dividend can increase from $2.00 to $2.50 without changing the required return. This action will __________ the intrinsic value (P0) of the stock price.
A. reduce
B. stabilize
C. increase
D. have no impact on
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The Professional Risk Managers Guide To Financial Market Bond Markets
Authors: Professional Risk Managers' International Association (PRMIA)
1st Edition
0071738932
