Question: Based on the dividend discount model, the current value of a stock will _____ as the discount rate is increased. 1. decrease 2. either decrease
Based on the dividend discount model, the current value of a stock will _____ as the discount rate is increased.
| 1. | decrease | |
| 2. | either decrease or remain constant | |
| 3. | increase | |
| 4. | either remain constant or increase | |
| 5. | remain constant |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
