Which of the Following Formulas Is INCORRECT

question 58

Multiple Choice

Which of the following formulas is INCORRECT?

• A) Divt = EPSt × Dividend Payout Rate
• B) PN = (rE - g) × DivN+1
• C) earnings growth rate = retention rate × return on new investment
• D) rE = (Divt / P0) + g

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Definitions:

Dodd-Frank Wall Street Reform And Consumer Protection Act

A comprehensive piece of financial reform legislation passed in 2010 aimed at reducing risks in the American financial system, with a focus on consumer protection.

Inherent Authority

The power or authority possessed by an official body or official inherently through their position or role, not through external sources or assignments.

Proxy

A person who is authorized to vote the shares of another person. Also, the written authorization empowering a person to vote the shares of another person.

Ultra Vires

A Latin term meaning “beyond the powers”; in legal context, actions taken by a corporation or company officials that are beyond their legally granted corporate powers.