The ________ approach begins with the current earnings multiplier and estimates the direction and extent of a change in the specific factors affecting dividend payout, required rate of return and growth rate of dividends.
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A. B. C. D.C
There are two ways to estimate the earnings multiplier: (1) Direction of change approach and (2) Specific estimate approach. The first focuses on change and change direction, while the other focuses on scenario-based estimates.