Assume initially that the required rate on investments is 20%, expected divided is $10 and a forecasted

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Question:

Assume initially that the required rate on investments is 20%, expected divided is $10 and a forecasted price a year from now is $50. Everything else the same, how would a decrease in the required return on investments to 10% affect the present stock price?

A. Will increase the present price

B. Not enough information to answer

C. Have no affect on it

D. Will decrease the present price