Using the constant growth model, an increase in the required rate of return from 17 to 20% combined with an increase in the growth rate from 8 to 11% 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% combined with an increase in the growth rate from 8 to 11% 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