A decrease in ____________ will result in a decrease in the current value of a s

Question

A decrease in ____________ will result in a decrease in the current value of a stock according to the dividend growth model?

I. discount rate
II. dividend amount
III. time to maturity

a)II only

b)I only

c)I and II only

d)I and III only

e)I, II and III

Which of the following will decrease the price sensitivity of a bond to changes in interest rates?

I. decrease in coupon rate
II. increase in coupon rate
III. increase in investors buying the bond
IV. decrease in investors buying the bond

II and IV only

I and IV only

II only

I and III only

II and III only

Explanation / Answer

1) a)II only ( DIVIDEND ONLY)

2) II only   II. increase in coupon rate

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