QUESTION 14

1. Which of the following changes will NOT result in an increase in the magnitude of a firms trailing price-earnings (P/E) ratio?

   	1.	An increase in the anticipated growth rate for the firms future earnings
   	2.	The firms decision to adopt a more conservative accounting policy
   	3.	An decrease in the firms earnings as the result of an unusual loss
   	4.	An increase in the firms financial leverage (FLEV)