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    Dividend growth model

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    Base this answer on the dividend growth model. If you expect the market rate of return to increase across the board on all equity securities then you should also expect:
    an increase in all stock values
    all stock values to remain constant
    a decrease in all stock values
    dividend paying stocks to maintain a constant price while non dividend paying stocks decrease in value
    dividend paying stocks to increase in price while non dividend paying stocks decrease in value

    © BrainMass Inc. brainmass.com October 10, 2019, 1:23 am ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/dividend-growth-model-mcq-332238

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