6. (1 point) Looking at the equations studied, explain if the following statements are true, false, or uncertain from a theoretical point of view:

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. A company has achieved in the past 25% ROE if the ROE is expected to fall abruptly to 12% from lower opportunities of investment in the next periods; will decide to decrease its payout ratio.