Question
Consider a company called Opportunities, Inc, which has a required rate of return of 11%. The company has an option to engage in projects that
Consider a company called "Opportunities, Inc", which has a required rate of return of 11%. The company has an option to engage in projects that could generate a ROE of 11%. Attempt 1/5 for 10 pts. Part 1 Which of the following statements is true about the market value of the company?
The company can increase its value by decreasing its earnings retention ratio.
The company can increase its value by increasing its plowback ratio.
The company can increase its value by decreasing its dividend payout ratio.
The company can increase its value by increasing its dividend payout ratio.
The value of the company is not affected by the payout and earnings retention ratio.
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