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The current expected value of a stock is $32. If investors demand a higher rate of return of 10% instead of the 8% rate of
The current expected value of a stock is $32. If investors demand a higher rate of return of 10% instead of the 8% rate of return, what will the impact on the stock price of the firm be? a. The stock price will not be affected by the change in the rate of return. b. The stock price will increase to $35. c. The stock price will increase by 10%. d. The stock price will decrease. e. The stock price will reduce
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