Which of the following, holding all other variables constant, will cause an INCREASE in a constant growth stock's current value?

Question

Quizplus · Accepted Answer

An increase in the growth rate will directly result in an increase in the constant growth stock's current value, holding all other variables constant. An increase in the market return (k) will lead to an increase in the required rate of return, which may result in a decrease in the stock value. An increase in the number of years the stock is held may result in a higher value due to the effects of compounding, but this is not a direct cause of an increase in current value.

Which of the Following, Holding All Other Variables Constant, Will