In the Gordon growth model, an increase in the expected growth of dividends or a decrease in the yields on bonds O a. increases the future stock price. O b. decreases the current stock price. OC. decreases the future stock price. Od. increases the current stock price.

In the Gordon growth model, an increase in the expected growth of dividends or a decrease in the yields on bonds O a. increases the future stock price. O b. decreases the current stock price. OC. decreases the future stock price. Od. increases the current stock price.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 2E

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In the Gordon growth model, an increase in the expected growth of dividends or a decrease in the
yields on bonds
O a. increases the future stock price.
Ob. decreases the current stock price.
Oc. decreases the future stock price.
Od. increases the current stock price.

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