Question: 2. Which of the following is likely to decrease the current price of a stock? a. Increasing the discount rate. b. Increasing the dividend. c.
2. Which of the following is likely to decrease the current price of a stock?
a.
Increasing the discount rate.
b.
Increasing the dividend.
c.
Increasing the number of years, you plan to own the stock.
d.
Increasing the growth rate.
3. The internal growth rate (IGR) is:
a.
Maximum growth rate achievable without external financing and while maintaining a constant debt-equity ratio.
b.
Evaluating financial plans and find what is needed to finance
c.
Maximum growth rate achievable without external financing
d.
Increase in assets required - increase in internal financing
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