Beta measures the Quantity of Diversifiable Risk. O True O False Which of the following statements is TRUE regarding increasing shareholder value for a constant growth stock. A firm can increase its growth rate by retaining more of its earnings. If a firm wants to increase its share price, it must cut its dividend and invest more. If a firm increases the proportion of earnings it retains it will increase its dividends. If pursuing a new capital budgeting investment opportunity decreases the incremental earnings from an existing project then the decreased incremental earnings: should be included when calculating free cash flows to determine the NPV of the new project. are not relevant because earnings are not cash flows. should be ignored because they relate to a different project