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a decrease IN what will increase the current value of a stock according to the dividend...

a decrease IN what will increase the current value of a stock according to the dividend growth model

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Answer #1

please find below the solution........ let me know if you need any clarification..

as per DDM price of the stock = expected dividend next year /(required rate - growth rate)

Therefore decline in required rate will lead to the increase in value of the stock.

Ans = Required rate.

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