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Examination Question Q1: P/E rises when : (A) Growth rises, discount rate falls, reinvestment rate is flat. (B) Growth falls, discount rate falls, reinvestment rate rises. (C) Growth exceeds, discount rate and reinvestment rate falls short of growth. (D) Discount rate falls and reinvestment rate rises.[Ans]   Q2: The optimal policy for liquidation or divestiture…

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