Which of the Following Contributes to High P/E Ratios

question 67

Multiple Choice

Which of the following contributes to high P/E ratios?

• A) Periods of high inflation.
• B) High dividend payout ratios.
• C) High debt ratios.
• D) High rate of earnings growth.

---

Definitions:

Raven Progressive Matrices

A nonverbal group test typically used to measure abstract reasoning and general intelligence.

Mean Performance

Refers to the average outcome or score achieved by a group in a test or task, calculated by dividing the sum of all individual scores by the number of scores.

Generations

Groups of individuals, typically within a society, born and living at about the same time, known for having shared experiences.

Content Validity

The extent to which a test or measurement accurately represents the construct it is intended to measure, covering all relevant facets.