Which of the Following Formulas Is INCORRECT

question 60

Multiple Choice

Which of the following formulas is INCORRECT?

• A) Div_t = EPS_t × Dividend Payout Rate
• B) P_N = (r_E - g) × Div_N+1
• C) earnings growth rate = retention rate × return on new investment
• D) r_E = (Div_t / P₀) + g

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