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Assuming all other factors are constant, which one of the following will reduce the P/E ratio A. The dividend payout ratio decreases B inflation expectations

Assuming all other factors are constant, which one of the following will reduce the P/E ratio

A. The dividend payout ratio decreases

B inflation expectations decline, results in a reduction in the nominal risk-free rate

C The company's return on equity increases.

D The market risk premium decreases.

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