Question: Answer this question based on the discounted dividend model. If you expect the market rate of return to increase across the board on all equity

Answer this question based on the discounted dividend model. If you expect the market rate of return to increase across the board on all equity securities, then you should also expect:

A) an increase in all stock values.

B) a decrease in all stock values.

C) all stock values to remain constant.

D) dividend-paying stocks to increase in price while non-dividend paying stocks decrease in value.

E) dividend-paying stocks to maintain a constant price while non-dividend paying stocks decrease in value.

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