Using the constant growth model, an increase in the required rate of return from 17 to 20 percent combined with an increase in the growth rate from 8 to 11 percent would cause the price to
A) rise more than 3%.
B) rise less than 3%.
C) remain constant.
D) fall more than 3%.
E) fall less than 3%.

Question

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The Answer of Using the constant growth model, an increase in the required rate of return from 17 to 20 percent combined with an increase in the growth rate from 8 to 11 percent would cause the price to
A) rise more than 3%.
B) rise less than 3%.
C) remain constant.
D) fall more than 3%.
E) fall less than 3%.

Using the Constant Growth Model, an Increase in the Required