13:04 il 5G Toets doen Afsluiten Vraag 4 1 punten Consider a perfect capital market. The price per share at t = 0 of com

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13 04 Il 5g Toets Doen Afsluiten Vraag 4 1 Punten Consider A Perfect Capital Market The Price Per Share At T 0 Of Com 1 (31.48 KiB) Viewed 22 times

13:04 il 5G Toets doen Afsluiten Vraag 4 1 punten Consider a perfect capital market. The price per share at t = 0 of company A is €80,00. The expected earnings per share at t = 1 are €8,00. The pay-out ratio is 100% and the annual growth rate is 0%. Assume that the firm decides starting att = 1 - to decrease the pay-out ratio from 100% to 60% and to invest the retained earnings in growth permanently. The return on new investments (roni) is 10.00% The required return by the equity holders in) does not change as a result of the change in the dividend and investment policy. The firm is fully equity financed Question: Which of the following statements is true? As a result of the change in the dividend- and Investment policy the price per share increases by €8,00 As a result of the change in the dividend- and investment policy the price per share decreases by €4.00 As a result of the change in the dividend and investment policy the price per share increases by €4,00. As a result of the change in the dividend-and investment policy the price per share does not change.