Suppose that in 2024 the expected dividends of the stocks in a broad market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant growth formula for valuation, if interest rates increase to 9%, the value of the market index will change by _____.
Multiple Choice
-10.00%
-20.00%
-25.00%
-33.00%