Question: 33) Other things being the same, which factors would increase a firm's P/E ratio? Multiple Choice A) an increase in the dividend payout ratio B)

33) Other things being the same, which factors would increase a firm's P/E ratio?

Multiple Choice

A) an increase in the dividend payout ratio

B) an increase in investor's risk aversion

C) a decrease in firm's risk

D) a decrease in firm's plowback ratio

Step by Step Solution

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 Finance Questions!

Q:

33) Other things being the same, which factors would increase a firm's P/E ratio? Multiple Choice a) an increase in the dividend payout ratio b) an increase in investor's risk aversion c) a decrease...

Q:

Please provide a maximum one-page summary of how we can analyze the cost of capital for our project (below) vis--visthe peer-reviewed research article attached. Consider risk as you decide. What...

Q:

Which of the following is incorrect Multiple Choice The dividend growth model explicitly considers risk in estimating the cost of equity o o o Financial plans include a section on necessary financing...

Q:

Other things being the same, which factors would increase a firm's P/E ratio? Multiple Choice A)an increase in investor's risk aversion B)an increase in the dividend payout ratio C)a decrease in...

Q:

Part I Multiple Choices (5 points each) 1. If a firm decreases its dividend reinvestment rate (plowback ratio), then, all else equal, which of the following will occur: A. earnings growth will...

Q:

Question: Case 16 The Maria and Sancho Ruiz Case A COMPREHENSIVE FINANCIAL PLANNING CASE Maria Ruiz recently turned age fifty. She heard about your firm from a neighbor who recommended your services...

Q:

located in Bensalem, PA. "Lucky" won a lottery worth over $500 million and has established this holding company to manage the investments. He has invested in a number or real estate projects, buying...

Q:

Can I get you to complete out a midterm I have? I've answered some of the questions and you did a similar one a couple of months ago. BFIN3321 MIDTERM EXAM SUMMER 2014 MULTIPLE CHOICE (2 points each)...

Q:

During the depression of the 1930s, Ben Jenkins, Sr., a wealthy, expansion-oriented lumberman whose family had been in the lumber business in the southeaster United States for several generations,...

Q:

1. Prepare a written analysis of the financial ratios of the company Walmart.. This must include trend analysis (historical and projected) and comparative analysis (cross-sectional or industry). The...

Q:

Newbridge Networks granted Larry stock options for 100,000 shareson December 31, 1990. The strike price was $32.00 a share based on the market value on December 31, 1990. The options were allocated...

Q:

Calculate the solubility of Mn(OH)2 in grams per liter when buffered at pH (a) 7.0, (b) 9.5, (c) 11.8.

Q:

A monopolist always faces a demand curve that is a. perfectly inelastic. b. perfectly elastic. c. unit elastic. d. the same as the market demand curve.

Q:

Which of the following is true according to Porter's model? When start - up costs are low, the threat of new entrants to existing businesses is high. The power of buyers reduces when deep discounts...

Q:

Explain the importance of effectively communicating the nature and value of benefits to employees. page 598

Q:

Describe the regulatory constraints that affect the way employee benefits are designed and administered. page 603

Q:

Describe the effects of benefits management on cost and workforce quality. page 586