You would expect the price of a share of stock to rise if
A) the expected dividend of the stock rose.
B) the economy went into recession.
C) the price level was declining.
D) interest rates rise.

Question

Quizplus · Accepted Answer

The expected dividend of a stock represents a stream of future cash flows that investors expect to receive. If the expected dividend of a stock rises, then investors will value the stock more highly and bid up its price, leading to a rise in the stock price.

You Would Expect the Price of a Share of Stock