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In: Economics

According to the Gordon growth model, which of the following can cause the value of a...

According to the Gordon growth model, which of the following can cause the value of a stock to increase?

Select one:

increased required return on equity

increased idiosyncratic risk

lower expected growth rate of dividends

lower interest rate on 3-month Treasury bill

Solutions

Expert Solution

lower interest rate on 3-month Treasury bill

because it will reduce the cost of capital which is positive for stock

Rahul Sunny answered 2 years ago
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