Question: a. When computing the price of the stock with the dividend discount model, how would the price of a stock be affected if the required

a. When computing the price of the stock with the dividend discount model, how would the price of a stock be affected if the required rate of return is increased. Explain the logic of this relationship.

b. When computing the price of a stock using the constant-growth dividend discount model, determine how the price of a stock would be affected if the growth rate is reduced. Explain the logic of this relationship.

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