Quiz Ch 07 – Impact of Earnings Reinvestment on Firm’s Stock Price

Fundamentals of Corporate Finance

Brealey, Myers, and Marcus

10th Edition

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When a firm reinvests its earnings at a rate matching the required return, what is the impact on its stock price?

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  • Search Terms: a) a at by constant. b) decline dividend earnings equal exceeds firm firm's growth happens increase is its payout plowback price rate rate. c) ratio reinvests remain required return. return? stock sustainable that the to unless what will zero. d)
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