A decrease in the ________ will cause an increase in common stock value.
A) growth rate
B) required rate of return
C) last paid dividend
D) both B and C

Name: A decrease in the ________ will cause an increase in common stock value. A) growth rate B) required rate of return C) last paid dividend D) both B and C
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Question

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A decrease in the required rate of return increases the present value of future cash flows, thus increasing the common stock value.

A Decrease in the ________ Will Cause an Increase in Common