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
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