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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