Question
A company with a stable growth of 1% has net income of $50 million. The company decides to increase its dividend payout ratio by 2%.
A company with a stable growth of 1% has net income of $50 million. The company decides to increase its dividend payout ratio by 2%. What will most likely happen to the company's price to earnings ratio?
A. P/E ratio will increase B. P/ ratio will remain unchanged C. P/E ratio will decrease
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
