People have identified the CAPM and DDM as important formulas for finding a stocks required...
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People have 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:
a. Rise in the risk free rate.
b. Fall 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.
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