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A firm that has an ROE of 1 2 % is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield
A firm that has an ROE of is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of and a capital gain yield of Given this information, which of the following statements is are definitely correct?
All else equal, the firm's growth rate will accelerate after the payout change.
All else equal, the firm's stock price will go up after the payout change.
All else equal, the firm's PE ratio will increase after the payout change.
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