According to the Gordon growth model,which of the following can cause the value of a stock to decline?

Question

Quizplus · Accepted Answer

An increase in systemic risk, which refers to the risk that affects an entire market or market segment, can cause the required return on equity to increase. As the required return on equity increases, the value of a stock decreases according to the Gordon growth model. Higher expected growth rate of dividends or an increase in the current dividend would increase the value of a stock, while a decreased required return on equity would also increase the stock's value.

According to the Gordon Growth Model,which of the Following Can