Everything else equal, how would each of the following affect the market value of a stock? Indicate by a plus ( +), minus (-), or zero (0) if the factor wouldincrease, decrease, or have an indeterminate effect. Be prepared to justify your answer.

 a. Investors require a higher rate of return to buy the stock. 

 b. The company increases dividends.

 c. The company’s growth rate increases. 

d. Investors become more risk averse. 

 

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