Which of the following would tend to reduce a firm's P/E ratio?

Which of the following would tend to reduce a firm's P/E ratio? (1 mark)

a.

The firm increases return on equity for the long term

b.

None of the above

c.

The rate of return on Treasury bills decreases

d.

The firm significantly decreases financial leverage

e.

The level of inflation is expected to increase to double-digit levels