The constant growth valuation formula has dividends in the numerator. Dividends are divided by the difference between the required return and dividend growth rate as follows: P^0=(nn)B1 Wyich of the following statements is true? Increasing diviends will always decrease the stock price, because the firm is depleting internal funding resources, Increasing dividends will alwars increase the stock proce. Increasing dividends may not alwars increase the stock price, because less earnings may be invested back into the firm and that impedes growth. Walter utities is a divatend-pawng company and is expected to pay an annubl dividend of $2,25 at the rnd of the yeae. Its dividend is expected eo grow at a constant rate of 6.00% per year. If Walter's stock currentiy trades for $17.00 per share, what is the expected rate of return? 692659 19.244 6.22 .499 1,563,53% in the future? If mill say the same It nill inicreane If moli dectease