Assume that you are using the dividend growth model to value stocks. If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the:

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The dividend growth model (DGM) values a stock by dividing its expected dividend per share by the difference between its required rate of return (market rate of return) and its dividend growth rate. If the market rate of return increases, the denominator in this equation becomes smaller, leading to a lower valuation for the stock, all else constant. This means the market values of all stocks are expected to decrease if the market rate of return increases, assuming other factors remain constant.

Assume That You Are Using the Dividend Growth Model to Value