Discuss the effects on the current price of a stock from each of the following:
a) An increase in the growth rate of the dividend;
b) A decrease in the risk-free interest rate;
c) An increase in the equity-risk premium; and finally
d) A decrease in the annual dividend.

Question

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The Answer of Discuss the effects on the current price of a stock from each of the following:
a) An increase in the growth rate of the dividend;
b) A decrease in the risk-free interest rate;
c) An increase in the equity-risk premium; and finally
d) A decrease in the annual dividend.

Discuss the Effects on the Current Price of a Stock