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.