Question: 21. Using the constant growth model, an increase in the required rate of return from 17 to 20 percent combined with an increase in the

21. Using the constant growth model, an increase in the required rate of return from 17 to 20 percent combined with an increase in the growth rate from 8 to 11 percent would cause the price to

a. rise less than 3%.

b. fall less than 3%.

c. fall more than 3%.

d. remain constant.

e. rise more than 3%.

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