Question: 3.In the Gordon growth model, a decrease in the required rate of return on equity D. increases the current stock price. 4. Using the Gordon

3.In the Gordon growth model, a decrease in the required rate of return on equity

D. increases the current stock price.

4. Using the Gordon growth formula, if D1 is $2.00, Ke is 12% or 0.12, and g is 10% or 0.10, then the current stock price is

C.$100

These are the actual answers here, but could anyone please explain why? I need an explanation to study.

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