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7A-2. If more dividends are paid out, there will be a reduction in the equity base, and this will cause a decrease in the growth of earnings per share. Solutions to Problems—Appendix 7-A. 7-A1. a) b) Book value per share = Beginning book value + Retained Earnings (end of 2008) per share (beg. 2008) (EPS-DPS) ................
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