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15. A company with sustainable returns to capital of 15 percent and a cost of capital of 12 percent will maximize its value by offering

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15. A company with sustainable returns to capital of 15 percent and a cost of capital of 12 percent will maximize its value by offering dividends exactly equal to its cost of capital. True False 16. If the P/E ratio of McDonald's is lower than that of Yum! Brands, the market believes that Yum! Brands has more growth opportunities than McDonald's. True False

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