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Which of the following statements regarding profitable and unprofitable growth is FALSE?If a firm wants to increase its share price, it must cut its dividend and re-invest more of its earningsIf the firm retains more earnings, it will be able to pay out less of those earnings, which means that the firm will have to reduce its dividend.A firm can increase its growth rate by retaining (and reinvesting) more of its earnings.Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the new investments have positive NPV.
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