Which of the following relationships in the P/E ratio should not hold, other things being equal?...

  

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Which of the following relationships in the P/E ratio should not hold, other things being equal? A. The higher the expected dividend payout ratio D₁/E₁, the higher the P/E. B. The higher the required rate of return, k, the lower the P/E. C. The higher the expected growth rate, g, the higher the P/E. D. All of the relationships should hold. Which of the following relationships in the P/E ratio should not hold, other things being equal? A. The higher the expected dividend payout ratio D₁/E₁, the higher the P/E. B. The higher the required rate of return, k, the lower the P/E. C. The higher the expected growth rate, g, the higher the P/E. D. All of the relationships should hold.

Answer rating: 100% (QA)

Answer Correct answer is D All of the relationship holds goo... View the full answer