Question
When a constant-growth model is used to value a stock index, a decrease in the expected rate of dividend growth will: A. increase the indicated
When a constant-growth model is used to value a stock index, a decrease in the expected rate of dividend growth will:
A. increase the indicated value of the index.
B. decrease the indicated value of the index.
C. decrease the value of the current dividend.
D. increase the required return on the index.
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
