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25 April, 04:59

g A. Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the return of new investments is higher than the cost of capital. B. We cannot use the constant dividend growth model to value the stock of a firm with rapid or changing growth. C. Total return equals earnings multiplied by the dividend payout rate. D. As firms mature, their earnings exceed their investment needs and they begin to pay dividends.

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