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DSB Inc has a ROE equal to the required rate of return on its stock, then A. DSB can increase stock price and P/E by

DSB Inc has a ROE equal to the required rate of return on its stock, then

A. DSB can increase stock price and P/E by retaining more earnings.

B. DSB can increase stock price and P/E by increasing the dividend growth rate.

C. DSB can increase stock price and P/E by retaining more earnings and increasing the growth rate.

D. The amount of earnings retained by the firm does not affect the stock price or the P/E.

E. None of the options are correct.

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