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Assume a company’s ROE is 14% and the required return on equity is 13%. All else remaining equal, if there is a decrease in a firm’s retention rate, a stock’s value as estimated by the constant growth dividend discount model (DDM) will most likely:
A) either increase or decrease.
B) not change.
C) increase.
D) decrease. |
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发表于 2013-4-10 02:00
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