Question: 5. Using the constant growth model, an increase in the required rate of return from 19 to 17 percent combined with an increase in the

5. Using the constant growth model, an increase in the required rate of return from 19 to 17 percent combined with an increase in the growth rate from 11 to 9 percent would cause the price to

a. fall less than 2 percent.

b. rise less than 3 percent.

c. rise more than 2 percent.

d. remain constant.

e. fall more than 2 percent.

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