Everything else equal, how would each of the following affect the market value of a stock? Indicate by a plus (+), minus (–), or zero (0) if the factor would increase, decrease, or have an indeterminate effect. Be prepared to justify your answer.

a. Investors require a higher rate of return to buy the stock.              ______________

b. The company increases dividends.                                                 ______________

c. The company’s growth rate increases.                                            ______________

d. Investors become more risk averse.                                                ______________