Question: Holding everything else constant, what effect would the following have on a company's P/E ratio? (a) An increase in the expected growth rate of earnings
(a) An increase in the expected growth rate of earnings
(b) A decrease in the expected dividend payout
(c) An increase in the risk-free rate of return
(d) An Increase in the risk premium
(e) A decreases in the required rate of return
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a Earnings and dividends are directly related therefore an incre... View full answer
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