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The stock price of XYZ Ltd is $45. EPS is $2.50 and the required return on equity is 8 per cent annually. Which one of
The stock price of XYZ Ltd is $45. EPS is $2.50 and the required return on equity is 8 per cent annually. Which one of the following statements is false?
The answer is - "All else equal, an increase in the required return on equity to 10 per cent will cause NPVGO to rise to $22 per share"
But I don't know how it arrived to that answer.
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