Using the constant growth model, an increase in the required rate of return from 14 to 18 percent combined with an increase in the growth rate from 8 to 12 percent would cause the price to
A) fall more than 4%0
B) fall less than 4%.
C) rise more than 4%.
D) rise less than 4%.
E) remain constant.

Question

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The Answer of Using the constant growth model, an increase in the required rate of return from 14 to 18 percent combined with an increase in the growth rate from 8 to 12 percent would cause the price to
A) fall more than 4%0
B) fall less than 4%.
C) rise more than 4%.
D) rise less than 4%.
E) remain constant.

Using the Constant Growth Model, an Increase in the Required