If a Firm Has a Required Rate of Return Equal

question 43

Multiple Choice

If a firm has a required rate of return equal to the ROE

• A)the firm can increase market price and P/E by retaining more earnings.
• B)the firm can increase market price and P/E by increasing the growth rate.
• C)the amount of earnings retained by the firm does not affect market price or the P/E.
• D)A and B.
• E)none of the above.

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Definitions:

Interactive Communication

A form of communication where there is active participation and exchange between all parties involved, allowing for immediate feedback and adaptation of message.

Publicity

The public visibility or awareness of a product, service, person, or organization achieved through media coverage or promotional activities, often without direct payment.

Sales Promotion

A marketing strategy that involves short-term incentives to encourage the purchase or sale of a product or service.

Continuous Use

Continuous use refers to the repeated and ongoing employment of a product, service, or system, often indicating a level of dependency or habituation by the users.