Which of the following statements is TRUE?

	a.	Retention ratio is the percentage of earnings that is paid out as dividends
	b.	Present value of growth opportunities depends on the relationship between ROE and required rate of return
	c.	Positive retention ratio b>0 implies PVGO>0
	d.	The formula V0 = E1 / k assumes that the firm reinvests all of its earnings perpetually and pays no dividends.

When ROE < k, increasing _______ should increase the intrinsic value of equity

	a.	Retention ratio
	b.	Dividend growth rate
	c.	Dividend payout
	d.	Required rate of return