Using the Gordon growth model, a stock's price will increase if
A) the dividend growth rate increases.
B) the growth rate of dividends falls.
C) the required rate of return rises.
D) the expected sales price rises.
Answer: A
Using the Gordon growth model, a stock's price will increase if
A) the dividend growth rate increases.
B) the growth rate of dividends falls.
C) the required rate of return rises.
D) the expected sales price rises.
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