Suppose two analysts are evaluating a stock. Analyst A assumes that the required return on the stock is higher than the estimate from Analyst B. All other estimates are the same. The price of the stock calculated by Analyst A will be _____ than the price calculated by Analyst
A) higher
B) lower
C) the same
D) lower only if the stock does not pay a dividend.
E) higher only if the stock does not pay a dividend.
Correct Answer:
Verified
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