Other Things Equal, If The

question 18

Multiple Choice

Other things equal, if the:

• A) required return increases, the P/E ratio will rise.
• B) risk premium increases, the P/E ratio will rise.
• C) risk-free rate rises, the P/E ratio will fall.
• D) dividend payout increases, the P/E ratio will fall.

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Definitions:

Receptor Neurons

Specialized neurons that respond to physical or chemical changes in their surroundings, initiating sensory input to the nervous system.

Bipolar Neurons

A type of neuron with two extensions (one axon and one dendrite), found in sensory organs like the retina of the eye.

Olfactory Cortex

A part of the brain involved in the perception and recognition of smells.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth, responsible for detecting the five types of taste: sweet, sour, salty, bitter, and umami.