Question: Based on the relationships in the dividend valuation model, an increase in the dividend payout ratio most likely results in: A. a lower price-earnings ratio.

Based on the relationships in the dividend valuation model, an increase in the dividend payout ratio most likely results in:

A. a lower price-earnings ratio.

B. a higher price-earnings ratio.

C. no change in the price-earnings ratio.

Step by Step Solution

3.43 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Financial Statement Analysis Questions!