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A Firm's Earnings Per Share Increased from $10 to $12,its

Question 83

Multiple Choice

A firm's earnings per share increased from $10 to $12,its dividends increased from $4.00 to $4.40,and its share price increased from $80 to $100.Given this information,it follows that _________.


A) the stock experienced a drop in its P/E ratio
B) the company had a decrease in its dividend payout ratio
C) both earnings and share price increased by 20%
D) the required rate of return increased

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