According to the Gordon-Growth model, an increase in the required return on equity
A) increases the future value of the stock.
B) reduces the current dividend.
C) reduces the value of a stock.
D) reduces the expected growth rate of the dividend.
C
You might also like to view...
In Thailand in the late 1990s, there was pressure for the value of the baht to decline as foreign investors began to
A) increase their investments in Thailand and exchanged their dollars for baht. B) increase their investments in Thailand and exchanged their baht for dollars. C) sell off investments they had made in Thailand and traded in their baht for dollars. D) sell off investments they had made in Thailand and traded in their dollars for baht.
An increase in government spending will result in an increase in the price level and an increase in real GDP in the long run
Indicate whether the statement is true or false
Which of the following would lead to an increase in bond supply?
A. An increase in corporate taxes. B. A decrease in expected inflation. C. An improvement in general business conditions. D. A decrease in government spending relative to revenue.
What must the value of the average propensity to save (APS) be if the average propensity to consume (APC) is greater than 1? Why?
What will be an ideal response?