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Assume a firm's Return on Equity is higher than its Cost of Equity. Which of the following statements is incorrect regarding this firm. The firm

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Assume a firm's Return on Equity is higher than its Cost of Equity. Which of the following statements is incorrect regarding this firm. The firm should increase the amount of retained earnings to maximize firm value The firm should increase its dividend payout to maximize firm value The firm's equity is probably undervalued. The firm should decrease the dividend payout to maximise firm value. The firm probably has high levels of growth opportunities

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