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The stock of Southern Company is expected to issue a dividend of $ 2 . 3 7 next year. The company would maintain a growth
The stock of Southern Company is expected to issue a dividend of $ next year. The company would maintain a growth rate of in its dividend indefinitely. The stock price is $ today. Which of the following scenarios would have decreased its stock price today?
A All else being equal, the dividend next year is decreased to $
B All else being equal, the required return is smaller than what it is today.
C All else being equal, the growth rate of the dividends is more than
D Both A and B would have decreased the stock price.
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