Which of the following statements is true about the constant growth model?
a. When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rae remains the same, this will leae to a decreased value of a the stock.
b. when using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to an increased value of the stock.