Which of the Following Will Affect Observed Price-To-Earnings Ratio (Lagged

question 40

Multiple Choice

Which of the following will affect observed price-to-earnings ratio (lagged ratio) :

I. Quality of earnings
II. Business risk
III. Risk free rate of interest
IV. Expected growth

• A)I, II, III, and IV
• B)II, III, and IV
• C)II and IV
• D)I, II, and IV

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Definitions:

Gas Diffusion

The process by which gas molecules spread from areas of high concentration to areas of low concentration.

Photosynthesis

The process by which green plants, algae, and certain bacteria convert light energy, usually from the sun, into chemical energy stored in glucose.

Monocot Leaves

Leaves of monocotyledonous plants, typically characterized by parallel veins.

Parallel Venation

A pattern of plant vein arrangement where veins run parallel to each other throughout the leaf blade.