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Which of the Following Formulas Is INCORRECT

Question 35

Multiple Choice

Which of the following formulas is INCORRECT?


A) g = retention rate × return on new investment
B) P0 = Which of the following formulas is INCORRECT? A) g = retention rate × return on new investment B) P<sub>0</sub> = C) Div<sub>t</sub> = EPS<sub>t</sub> × Dividend Payout Rate D) r<sub>E</sub> = + g
C) Divt = EPSt × Dividend Payout Rate
D) rE = Which of the following formulas is INCORRECT? A) g = retention rate × return on new investment B) P<sub>0</sub> = C) Div<sub>t</sub> = EPS<sub>t</sub> × Dividend Payout Rate D) r<sub>E</sub> = + g + g

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