A decrease in the dividend growth rate will increase a stock's market value, all else the same.

Name: A decrease in the dividend growth rate will increase a stock's market value, all else the same.
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Question

Quizplus · Accepted Answer

A decrease in the dividend growth rate typically leads to a decrease in a stock's market value, as the stock's future cash flows are expected to grow at a slower rate, making it less attractive to investors.

A Decrease in the Dividend Growth Rate Will Increase a Stock's