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

Question

Quizplus · Accepted Answer

According to the Gordon-Growth model, the value of a stock is inversely related to the required return on equity. An increase in the systemic risk (external factors that affect the stock market as a whole) can increase the required return on equity, causing the value of the stock to decline. None of the other options have a direct impact on the required return or the value of a stock according to the Gordon-Growth model.

According to the Gordon-Growth Model, Which of the Following Can