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In the context of DDM, a dividend payout ratio equal to 0% implies that the equity value today will be equal to $0. True False

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In the context of DDM, a dividend payout ratio equal to 0% implies that the equity value today will be equal to $0. True False In DCF valuation, a company can increase its equity value by borrowing more money provided that the return on capital exceeds the after-tax cost of debt. (Assume all other inputs are fixed.) O True False In the context of CAPM. a risky asset with B = 0 will have a positive expected return. (Assuming the risk-free rate is positive and investors are risk-averse.) O True O False

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