Which of the following formulas is INCORRECT? O A. Div, EPS, X Dividend Payout Rate OB. E=(Div/P)+g OC. PN (E-9) × Div N+1 O D. earnings growth rate= retention rate x return on new investment

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...
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Which of the following formulas is INCORRECT?
O A. Div = EPS, X Dividend Payout Rate
OB. TE= (Div/P)+g
OC. PN(Eg) × Div N+1
O D. earnings growth rate= retention rate x return on new investment
Transcribed Image Text:Which of the following formulas is INCORRECT? O A. Div = EPS, X Dividend Payout Rate OB. TE= (Div/P)+g OC. PN(Eg) × Div N+1 O D. earnings growth rate= retention rate x return on new investment
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