If the growth rate declines while the dividend and required rate of return stay the same, the value of the stock will also decline.

Name: If the growth rate declines while the dividend and required rate of return stay the same, the value of the stock will also decline.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

If the growth rate declines, the future cash flows from dividends are expected to grow at a slower rate, reducing the present value of those cash flows and thus decreasing the stock's value.

If the Growth Rate Declines While the Dividend and Required