The 2001 terrorist attacks and the Enron financial scandal caused anticipated dividend growth to ________,investors' required return on equity to ________,and stock prices to ________.

Question

Quizplus · Accepted Answer

The 2001 terrorist attacks and the Enron financial scandal created uncertainty and increased risk in the market, causing investors to demand a higher return on equity. This increased required return on equity would lead to a decrease in anticipated dividend growth, which in turn would cause stock prices to decrease.

The 2001 Terrorist Attacks and the Enron Financial Scandal Caused