!!! Two - PART Question !!!

Part 1) In Porter's 5 competitive forces used in industry analysis which of the following is NOT a barrier to entry affecting the threat of new entrants?

A) Availability of substitute products.

B) Government regulation.

C) High required investment.

D) Economies of scale in exiting companies.

Part 2) A firm's price-to-earnings ratio will increase when:

A_ The required return increases.

B_ The payout ratio increases.

C_ The retention ratio increases.

D_ The growth rate in dividends decreases.