Question
QUESTION 95 Which of the following statements about PE ratios is correct? a. If the required return for shareholders decreases, it will cause the PE
QUESTION 95
Which of the following statements about PE ratios is correct?
a. If the required return for shareholders decreases, it will cause the PE ratio to increase.
b. Without considering changes to price, if EPS decreases, it will result in a lower PE ratio.
c. The payout ratio and the PE ratio are inversely related
d. If the dividend growth rate increases and the retention ratio decreases, then the PE ratio will decrease.
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
