When a constant growth model is used to value a stock index, Ask an Expert

Finance

When a constant growth model is used to value a stock index, a decrease in the expected rate of dividend growth will

a) increase the indicated value of the index

b) decrease the indicated value of the index

c) decrease the value of the current dividend

d) increase the required return on the index

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91784866

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