Question
24.) A firm's earnings per share increased from $10 to $12, dividends increased from $4.00 to $4.80, and the share price increased from $80 to
24.) A firm's earnings per share increased from $10 to $12, dividends increased from $4.00 to $4.80, and the share price increased from $80 to $90. Given this information, it follows that Multiple Choice A.) the stock experienced an increase in the P/E ratio. B.)the firm had an increase in dividend yield. C.) the required rate of return increased. D.) the required rate of return decreased.
26.) Other things being equal, a low ________ would be most consistent with a relatively low growth rate of firm earnings. Multiple Choice A.)Dividend -payout ratio B.) degree of financial leverage C.) variability of earnings D.) Plowback ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started