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Lab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock value. 7-14 Assuming that all other variables remain unchanged, what effect would each of the following have on stock price? (a) The firm's risk premium increases. (b) The firm's required return decreases. (c) The dividend expected next year decreases. (d) The growth rate of dividends is expected to increase.

Lab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock value. 7-14 Assuming that all other variables remain unchanged, what effect would each of the following have on stock price? (a) The firm's risk premium increases. (b) The firm's required return decreases. (c) The dividend expected next year decreases. (d) The growth rate of dividends is expected to increase.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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MyLab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock value. 7-14 Assuming that all other variables remain unchanged, what effect would each of the following have on stock price? (a) The firm's risk premium increases. (b) The firm's required return decreases. (c) The dividend expected next year decreases. (d) The growth rate of dividends is expected to increase.
Transcribed Image Text:MyLab Finance Solutions 7-13 Explain the linkages among financial decisions, return, risk, and stock value. 7-14 Assuming that all other variables remain unchanged, what effect would each of the following have on stock price? (a) The firm's risk premium increases. (b) The firm's required return decreases. (c) The dividend expected next year decreases. (d) The growth rate of dividends is expected to increase.
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