O Price Bond Long Price Bond Short 1000 Question 8 3 pts Sh

O Price Bond Long- Price Bond Short > $1000 Question 8 3 pts Shares of stock in LynchPin Connectors currently sell for $57.20 each. It is announced that future cash flows of LynchPin are riskier than anticipated (required return increases), and expected dividend growth rates are lower than anticipated. Assuming the stock is priced correctly using the constant-growth dividend discount model, what will happen to stock price? 0 stock price will increase O Stock price will decrease O Stock price will not change Question 9 3 pts

Solution

Stock propr will not change
Stock prices move up and down every minute due to fluctuations in supply and demand. If more people want to buy a particular stock, its market price will increase. Conversely, if more people want to sell a stock, its price will fall.

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