Question: Explain why the following statements are true/false/uncertain. a. With all else held constant, a firm will have a higher P/E if its beta is higher.

Explain why the following statements are true/false/uncertain.
a. With all else held constant, a firm will have a higher P/E if its beta is higher.
b. P/E will tend to be higher when ROE is higher (assuming plowback is positive).
c. P/E will tend to be higher when the plowback rate is higher.

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