Discuss the equity market out performance

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Question: Another Wall Street analyst predicted in 2010 that, after the considerable deleveraging during the financial crisis, firms would begin once again to lever up with more borrowing. "They must defend their return on equity," he claimed. As a result, "investors should look for a rise in dividends and share buy-backs and an expansion of PIE multiples, leading to equity market out performance." Is he correct?

Reference no: EM131491104

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