How will the price of a stock be affected if the dividend growth rate is decreased?
A)It will increase.
B)It will either increase or there will be no change.
C)There will be no change.
D)It will either decrease or there will be no change.
E)It will decrease.

Question

Quizplus · Accepted Answer

If the dividend growth rate is decreased, it indicates that the company's future earnings may not be as strong as previously expected, which can lead to a decrease in demand for the stock. As a result, the price of the stock is likely to decrease.

How Will the Price of a Stock Be Affected If