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what is the correct answer and why ? B0Ove 34) The key consideration in determining whether an equity-financed investment is accretive or dilutive is the
what is the correct answer and why ?
B0Ove 34) The key consideration in determining whether an equity-financed investment is accretive or dilutive is the relationship between the rate of returned earned on equity capital invested in the project (ROE) and the earnings-to-price ratio (E/P), which is the reciprocal of the P/E ratio). If the project's ROE is greater than the E/P ratio, the the project will be A) accretive C) neither accretive and diluitive to the firm's EPS B) diluitive D) both accretive and diluitiveStep by Step Solution
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