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Which of the Following Statements Is Correct

Question 5

Multiple Choice

Which of the following statements is correct?


A) There is no clear relationship between ROCE and cost of capital to be used for discounted cash flow (DCF)
B) The P/E ratio is a good indication of investors expectations and can be easily converted into a cost of capital of capital figure
C) If a companies dividend yield is high this means that shareholders expectations are high and future dividends are expected to grow
D) All of the above are correct

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