Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a student has identified the capm and ddm as impor

A student has identified the CAPM and DDM as important formulas for finding a stocks...

80.2K

Verified Solution

Question

Finance

A student has identified the CAPM and DDM as important formulas for finding a stocks required return and price, respectively. Other things remaining equal, a surprise change in which of the following statistics will increase the stocks price? A stocks price is likely to rise when theres a surprise:

Select one:

a.

Fall in the risk free rate.

b.

Rise in the market risk premium.

c.

Rise in the stocks beta.

d.

Fall in the stocks expected dividend.

e.

Fall in the stocks expected dividend growth rate.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Marketing Arithmetic Exercise #2 Joe Stich has just become product manager for Brand X. Brand X is...

Finance
Q

. Solve the Initial value problem by using Laplace transforms: ? ?? + 3? ? +...

Advance Math
Q

Diabetes come with many chronic complications, such as heart, eyes, and kidney complications. If patients manage...

Medical Sciences
Q

1. A plant is located at an altitude where the atmospheric pressure head is 31 ft...

Mechanical Engineering
Q

of 10cm Find the total momentum delivered during 10 minutes time span 6 A thin...

Physics
Q

mm s 1 Average collision time for electrons conductor under a certain pote difference is...

Physics
Q

Let G be the directed graph whose vertices are the integers (2, 3,... N). A...

Basic Math
Q

Solve the equationx/3x9 -2 = 1/ x-3Does the equation have a solution?Input Yes or No...

Basic Math
Q

Rose Company uses the allowance method and estimates that 2% of its $10,000 Accounts Receivable...

Accounting
Q

Six. Measures of Solvency or Profitability The following data were taken from the financial statements...

Accounting
Q

Concord Corporation produces 10000 units of part A12E. The following costs were incurred at that...

Accounting
Q

Manufacturing overhead data for the production of Product H by Shakira Company, assuming the company...

Accounting