Question: Using the constant growth model, an increase in the required rate of return from 16 to 19 percent combined with an increase in the growth

Using the constant growth model, an increase in the required rate of return from 16 to 19 percent combined with an increase in the growth rate from 8 to 11 percent would cause the price to

(a) Rise more than 3%

(b) Rise less than 3%.

(d) Fall less than 3%.

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