Question: Suppose that in 2 0 1 2 the expected dividends of the stocks in a broad market index equaled $ 2 4 0 million when

Suppose that in 2012 the expected dividends of the stocks in a broad market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula for valuation, if interest rates increase to 9%, the value of the market will change by ________.
-25%
-20%
-33%
-10%

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