Assuming that all other variables remain unchanged, what impact would each of the following have on stock

Question:

Assuming that all other variables remain unchanged, what impact would each of the following have on stock price?

(a) The firm’s risk premium increases.

(b) The firm’s required return decreases.

(d) The rate of growth in dividends is expected to increase.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...