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Assume initially that the required return on investments is 20%, expected dividend is 10 cents...

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Accounting

Assume initially that the required return on investments is 20%, expected dividend is 10 cents and a forecasted rice a year from now is $50. Everything else held constant, how would a decrease in the required return on investments to 10% affect the present stock price?

A. Will decrease the present price

B. Have no affect on it

C. Will increase the present price

D. Not enough information to answer

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