Question: Using the constant growth model, a decrease in the required rate of return from 15 to 13 per cent combined with an increase in the

Using the constant growth model, a decrease in the required rate of return from 15 to 13 per cent combined with an increase in the growth rate from 5 to 6 per cent would cause the price to: 1. Rise more than 50%. 2. Rise less than 50%. 3. Fall by more than 50%. 4. Fall less than 50%.

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