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Which of the following statements is TRUE regarding increasing shareholder value for a constant growth stock. a. A firm can increase its growth rate by

Which of the following statements is TRUE regarding increasing shareholder value for a constant growth stock.

a. A firm can increase its growth rate by retaining more of its earnings.

b. If a firm wants to increase its share price, it must cut its dividend and invest more.

c. If a firm increases the proportion of earnings it retains it will increase its dividends.

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