Question: How will the change in required return influence the price of a stock? How will the dividend growth rate influence the price of a stock?

  1. How will the change in required return influence the price of a stock? How will the dividend growth rate influence the price of a stock?
  2. Based on the dividend growth model, what are the two components of a stocks rate of return?
  3. What is capital gain? What is dividend yield?
  4. What are the differences between common stocks and preferred stocks in terms of the rights of stockholders and dividend characteristics?

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