CHAPTER 11 Stock Valuation Problems 1. The dividend-growth model may be used to value a stock 281 a. What is the value of a stock if k 10% g-6% b. What is the value of this stock if the dividend is increased to $3 and c. What is the value of this stock if the required return declines to d. What is the value of this stock if the growth rate declines to 4 percent c. What is the value of this srock if the dividend is increased to $2.30, the other variables remain constant? 7.5 percent and the other variables remain constant? and the other variables remain constant? the growth rate declines to 4 percent, and the required return remains 10 percent