Which of the following, holding all other variables constant, will cause an INCREASE in a constant...

Question

Question

Which of the following, holding all other variables constant, will cause an INCREASE in a constant growth stock's current value?

An increase in the number years the stock is held

An increase in the market return (k)

An increase in the growth rate

Both "An increase in the growth rate" & "An increase in the market return (k)"

All of these choices are correct.

business finance

Answer 1

Answer #1

The correct answer is option of An increase in the growth rate which will cause an INCREASE in a constant growth stock's current value.

Feel free to ask in case of any query relating to this question

Answer 2

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