Assume that each of the following changes is independent (i.e., except for this change, all other factors

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Assume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case, indicate what will happen to the earnings multiplier and explain why.
a. The return on equity increases
b. The aggregate debt-equity ratio declines
c. Overall productivity of capital increases
d. The dividend-payout ratio declines

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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