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Memphic Memphic
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7 years ago
Consider the following equation:

Pretain = Pcum × 

The term Pretain in this equation represents:
A) the price of the stock if it retains and invests the cash.
B) the percentage of net income retained or reinvested back into the firm.
C) the percentage of net income paid out as a cash dividend.
D) the price of the stock if it retains cash to use in a share repurchase.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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pbrown223pbrown223
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7 years ago
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