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When using the constant-growth dividend valuation model, which of the following will lower the value ...
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When using the constant-growth dividend valuation model, which of the following will lower the value ...
When using the constant-growth dividend valuation model, which of the following will lower the value of the stock?
▸ an increase in the required rate of return
▸ a decrease in the required rate of return
▸ an increase in the dividend payout ratio
▸ an increase in the growth rate of the dividends
Textbook
Fundamentals of Investing
Edition:
14
th
Authors:
Zutter, Smart
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an increase in the required rate of return
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