1.

Ex. 2. The earnings per share of company are 16 The market rate of discoun applicable to the company is 12.5%, retained earnings can be employed to yield a retum c 10%. The company is considering a payout of 25%, 50% and 75%. Which of their vOlume maximize the wealth of shareholder, if aters model is used? Solution​

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ANSWER:

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Explanation:

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