Multiple Choice
Other things being equal,
A) the higher the expected growth rate, the lower the P/E ratio.
B) as the risk-free rate increases, the required rate declines.
C) as the required rate of return increases, the P/E ratio declines.
D) as the equity risk premium increases, the required rate of return will declines.
Correct Answer:
Verified
Correct Answer:
Verified
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