标题: Another PE Question [打印本页] 作者: Iginla2010 时间: 2013-4-10 02:00 标题: Another PE Question
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.