Given no change in required returns, the price of a stock whose dividend is constant will:

Name: Given no change in required returns, the price of a stock whose dividend is constant will:
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Quizplus · Accepted Answer

If a stock pays a constant dividend and there's no change in the required rate of return, the stock price will remain unchanged because the dividend discount model (with zero growth) shows that price is a function of the dividend amount and the required rate of return, both of which are constant in this scenario.

Given No Change in Required Returns, the Price of a Stock