Homework answers / question archive / Under which of the following scenarios will increasing the payout ratio for a firm decrease its equity value? A) Never B) Always C) When the return on equity is equal to its cost of equity D) When the return on equity is less than the cost of equity E) When the return on equity is greater than the cost of equity

Under which of the following scenarios will increasing the payout ratio for a firm decrease its equity value? A) Never B) Always C) When the return on equity is equal to its cost of equity D) When the return on equity is less than the cost of equity E) When the return on equity is greater than the cost of equity

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Under which of the following scenarios will increasing the payout ratio for a firm decrease its equity value?

A) Never

B) Always

C) When the return on equity is equal to its cost of equity

D) When the return on equity is less than the cost of equity

E) When the return on equity is greater than the cost of equity