Multiple Choice
A firm's earnings per share increased from $10 to $12, dividends increased from $4.00 to $4.80, and the share price increased from $80 to $90. Given this information, it follows that
A) the stock experienced a drop in the P/E ratio.
B) the firm had a decrease in dividend-payout ratio.
C) the firm increased the number of shares outstanding.
D) the required rate of return decreased.
Correct Answer:
Verified
Correct Answer:
Verified
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