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  3. assume that firm xyzs roe= 15%, its beta = 2, the

Assume that Firm XYZs ROE= 15%, its beta = 2, the market return = 15%,...

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Accounting

Assume that Firm XYZs ROE= 15%, its beta = 2, the market return = 15%, the risk-free rate = 5%. The firms current Dividend Payout Ratio = 60%. If the firm increases its Dividend Payout Ratio to 80%, its instinct value will

Increase

Decrease

Stay the same

Not enough information to decide

First decrease in short-term and then increase in the long-term

Answer & Explanation Solved by verified expert
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