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Which Three of the Following Correctly Relate to the Formula

Question 27

Multiple Choice

Which three of the following correctly relate to the formula P = di ? $Which three of the following correctly relate to the formula P = di ? kE - g A) P = the company's share price. B) kE = rate of return required for this risk class. C) g = br, where b is the fraction of earnings retained each year, and r is the rate of return on reinvestment. D) d1 = the dividend in the previous year of operations.$ kE - g

A) P = the company's share price.
B) kE = rate of return required for this risk class.
C) g = br, where b is the fraction of earnings retained each year, and r is the rate of return on reinvestment.
D) d1 = the dividend in the previous year of operations.

Correct Answer: