A company's dividend in one year is $1.00 and this is expected to increase at a constant rate of 2%. If the required return on this stock increases from 10% to 12$ by how much will the stock price change?
A) Increase by 20%
B) Decrease by 20%
C) Increase by 16.67%
D) Decrease by 16.67%

Question

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The Answer of A company's dividend in one year is $1.00 and this is expected to increase at a constant rate of 2%. If the required return on this stock increases from 10% to 12$ by how much will the stock price change?
A) Increase by 20%
B) Decrease by 20%
C) Increase by 16.67%
D) Decrease by 16.67%

A Company's Dividend in One Year Is $1