mparisons are often made between price-earnings ratios in different countries 9. Co ith the intention of finding undervalued and overvalued markets. P/E should be higher for countries with A Lower Interest Rates, Higher Growth Rate in GDP B) Higher Interest Rates, Higher Growth Rate in GDP C) Higher Interest Rates, Lower Growth Rate in G o. If a business's ROE is 12 percent, retention rate is 60%, its required rate of return 1 is 1 190, and dividend is expected to grow at a constant rate of 7.2% annually, What is its justified P/B based on fundamentals? A. 1.26 B. 1.67 C. 10.53 D. 11.28 11. If the company's expected dividend growth rate (g) is positive, which of the following is correct? A. The justified trailing P/E and the justified forward P/E should be equal B. The justified trailing P/E should be greater than the justified forward P/E C. The justified forward P/E should be greater than the justified trailing P/E