Question: Q16. Other things equal, a.the higher the expected growth rate, the lower the P/E ratio. b.if the risk-free rate rises, the required rate will decline.

Q16.    Other things equal,

 

a.the higher the expected growth rate, the lower the P/E ratio.

b.if the risk-free rate rises, the required rate will decline.

c.as the required rate rises, the P/E ratio declines.  

d.if the risk premium rises, the required rate will fall.

e.none of the above.

 

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