17. PE Ratio (LO4, CFA5) A companys return on equity is greater than its required return on...
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17. PE Ratio (LO4, CFA5) A company’s return on equity is greater than its required return on equity. The earnings multiplier (PE) for that company’s stock is most likely to be positively related to the:
a. Risk-free rate.
b. Market risk premium.
c. Earnings retention ratio.
d. Stock’s capital asset pricing model beta.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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