Assuming a Return on Equity Greater Than the Required Return

question 14

Multiple Choice

Assuming a return on equity greater than the required return, a decrease in the dividend payout ratio will cause a(n) _____ in the stock price.

• A) increase
• B) decrease
• C) no change
• D) decrease only if the change is temporary
• E) increase only if the change is temporary

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Definitions:

Regular Delivery

A standard or expected schedule for the distribution of goods or messages.

Present Intent To Contract

The current intention of parties to form a contract, which is necessary for establishing a binding agreement.

Code's Standards

Specific guidelines or rules within a legal, regulatory, or institutional framework that dictate the minimum acceptable levels of safety, ethics, or performance.

Contractual Liabilities

Obligations that a party is bound to fulfill according to the terms of a contract.