In the one-period valuation model,a stock's value will be higher

Question

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In the one-period valuation model, the stock's value is calculated as the expected future price plus the expected dividend at the end of the period, discounted by the required return on equity. Therefore, the higher the expected future price, the higher the stock's value. The other options, a lower dividend and a higher required return on equity, would lead to a lower stock value.

In the One-Period Valuation Model,a Stock's Value Will Be Higher